Abu Dhabi, UAE—Abu Dhabi National Oil Company (ADNOC) Thursday said it has awarded a contract worth $980 million (AED3.6 billion) to ADNOC Drilling to hire two jack-up offshore rigs and associated manpower and equipment.
The contract, awarded by ADNOC Offshore, will support the expansion of ADNOC’s production capacity as it responds to the growing global demand for lower carbon-intensity oil and gas, the company said.
ADNOC Drilling is the largest national drilling company in the Middle East by rig fleet size. Over 80 percent of the award value will flow back into the UAE’s economy under ADNOC’s In-Country Value (ICV) programme aimed at supporting local economic growth and diversification.
This award brings the total value of awards from ADNOC Offshore to ADNOC Drilling in 2022 to $5.95 billion (AED21.84 billion).
In October, ADNOC Drilling was awarded a contract worth $1.52 billion (AED5.58 billion) to provide jack-up and island rigs and associated Integrated Drilling Services. This followed two awards in August worth $3.43 billion (AED12.59 billion) to hire eight jack-up rigs.
ADNOC Offshore is supporting ADNOC’s drive to expand production capacity to five million barrels per day (mbpd) by 2030 and enable gas self-sufficiency for the UAE.
ADNOC Drilling’s rig fleet spans 105 owned rigs, including 28 offshore jack-up units, one of the largest operational jack-up fleets in the world. The company’s expansive rig fleet and expertise are key drivers in its ability to win and service large-scale drilling contracts for customers such as ADNOC Offshore.
Yaser Saeed Almazrouei, ADNOC Upstream Executive Director, said, “This award for the hire of jack-up rigs supports our ongoing efforts to responsibly unlock our lower carbon intensity oil and gas resources alongside our strategic international partners, and contribute to global energy security.”
Abdulrahman Abdulla AlSeiari, Chief Executive Officer of ADNOC Drilling, said, “Contracts like this help us ensure that we continue to achieve strong and sustainable growth, create value for our shareholders, and support our ambitious rig fleet expansion programme, whose capital expenditures are an important part of our commitments, making it possible for us to execute such contracts.”