ADNOC Drilling to buy hybrid power land rigs for $252m

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No cost or timeline was announced for the venture, which will be built and operated by ADNOC subsidiary ADNOC Gas and include carbon capture units, pipelines and a network of wells for CO2 injection. (AFP)
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  • The purchase is part of the company’s “rigorous decarbonisation strategy,” the company noted
  • ADNOC Drilling owns one of the world’s largest drilling and well completion fleets

ADNOC Drilling is purchasing ten newbuild hybrid power land drilling rigs for a total of $252 million, the company said, Oil&Gas reported. 

The purchase is part of the company’s “rigorous decarbonisation strategy,” the company noted. 

The hybrid power technology system stores energy in its batteries to use when there is a need for continuous power or to provide instant extra power when there is an increase in demand, reducing a rig’s greenhouse gas emissions intensity by 10 percent to 15 percent.

Depending on the location of the rig and the availability of grid electricity, each of the rigs will have the option to connect to the electrical grid with the least amount of adjustment, further decreasing emissions.  

The rigs are anticipated to enter the fleet in the fourth quarter of this year, contributing partially to revenue and EBITDA in 2024 and fully in 2025. They are the first brand-new land rigs purchased under the revised projection, which anticipates a peak-owned rig count of 142 by the end of 2024, which compares to IPO guidance of 127 rigs by the end of 2030. ADNOC Drilling owns one of the world’s largest drilling and well completion fleets. The ten newbuild hybrid power rigs will be built by China Petroleum Technology & Development Corporation in the People’s Republic of China,  Oil&Gas reported.

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