Two contracted projects worth $3.4bn play a key role in expanding ADNOC’s production capacity
Abu Dhabi National Oil Company (ADNOC) has announced two contracts totalling more than $3.4bn have been awarded to ADNOC Drilling, for the hiring and deployment of eight jack-up offshore rigs.
The contracts, valued at $1.5bn and $1.9bn respectively, awarded by ADNOC Offshore, will support the expansion of ADNOC’s crude oil production capacity to the level of five million barrels per day (mmbpd) by 2030, which is said to in-turn enable gas self-sufficiency for the UAE. Moreover, over 80% of the value of the awards is slated to flow back into the UAE’s economy, courtesy of ADNOC’s In-Country Value (ICV) programme, supporting local economic growth and diversification.
In September 2019, ADNOC Drilling completed its first offshore well.
With a duration of 15 years, the contracts will play a key role in helping ADNOC Drilling’s rig fleet to work with ADNOC and its strategic international partners to progressively unlock Abu Dhabi’s offshore oil and gas resources – where untapped reserves are said to be among the largest in the world.
Dr. Sultan Ahmed Al Jaber, Minister of Industry and Advanced Technology and ADNOC Managing Director and Group CEO, said, “This world-leading investment will significantly expand our drilling activity to accelerate growth, drive value and responsibly unlock the UAE’s resources in response to globally rising demand for energy. ADNOC Drilling’s state-of-the-art fleet and market-leading capabilities, will be a key enabler as ADNOC strengthens its position as a leading low-cost and low-carbon energy producer.”
The jack-up rigs will be hired along with manpower and equipment to support drilling operations across ADNOC’s offshore fields, which account for about half of ADNOC’s production capacity. ADNOC Drilling is the largest national drilling company in the Middle East by rig fleet size, with 105 owned rigs, including 27 offshore jack-up units, comprising one of the largest operational jack-up fleets globally.
In June 2022, Saipem was awarded $1.25bn in onshore and offshore contracts in the Middle East, while in July, a new MDEA plant was announced in Saudi Arabia, following a JV deal between Dow and Al-Hejailan Group.