Adnoc Drilling, a subsidiary of the Abu Dhabi National Oil Company or Adnoc, will acquire eight FlexRig land rigs from Helmerich & Payne for $86.5 million, said local reports on Thursday.
Adnoc, Adnoc Drilling, and rig technologies and drilling solutions provider H&P have formed a strategic alliance in this regard, said the reports.
The rigs are expected to be delivered and commissioned in stages over a 12-month period, subject to acceptance upon successful completion of a final inspection on customary terms and conditions.
Following this transaction, H&P will reportedly make a $100-million cornerstone investment into Adnoc Drilling’s recently announced initial public offering.
The alliance and rig acquisition are expected to support Adnoc’s target of reaching a production capacity of 5 million barrels per day (mbpd) and gas self-sufficiency for the UAE by 2030.
It is also expected to buttress its plans to unlock unconventional oil and gas resources.
These agreements will further drive Adnoc Drilling’s growth and expansion as well as enhance its rig-based operational performance, said the reports.
The alliance is also expected to support Adnoc Drilling in improving maintenance efficiencies, supplementing supply-chain capabilities, and adding engineering and rig design competencies.
The alliance will also deliver more competitive well-completion times, greater drilling efficiencies, and improved well economics, said the local reports.