Abu Dhabi National Oil Company (ADNOC) Thursday announced framework agreement awards valued at $1.94 billion (AED 7.1 billion) to enable drilling growth.
The awards build on ADNOC’s recent record investments in drilling-related equipment and services and support its strategy to boost crude oil production capacity to 5 million barrels per day (mmbpd) by 2030 and drive gas self-sufficiency for the UAE, the company said.
The framework agreements for wireline logging and perforation services are the largest of such awards in the oil and gas industry and were awarded to ADNOC Drilling, Schlumberger Middle East, Haliburton and Weatherford, following a competitive tender process.
Wireline logging involves continuously measuring the properties of rock formations to guide drilling operations while perforation creates tunnels in the wellbore to allow fluid to flow in from the reservoir.
Dr. Sultan bin Ahmed Al Jaber, Minister of Industry and Advanced Technology, and Managing Director and Group CEO of ADNOC, said, “Not only do these awards support our 2030 strategy but they are also expected to deliver over 80 percent of In-Country Value to the UAE and align with the UAE’s ‘Principles of the 50’ economic blueprint for sustainable growth.”
The framework agreement awards cover ADNOC’s onshore and offshore fields and will run for five years with an option for a further two years.
ADNOC Drilling’s share of the awards is the largest and it covers services including cased hole and open hole as well as perforation.
The framework agreement awards will support ADNOC’s requirement to drill thousands of new wells to expand its production capacity and remain a leading low-cost, low-carbon oil producer. The awards will also enable hundreds of millions of dollars in cost savings.
ADNOC said as an integral part of its 2030 strategy, it is optimizing its procurement strategy to reflect market dynamics, focusing on long-term contracts with an optimized number of suppliers that provide stable and reliable delivery at highly competitive rates.
In November 2021, ADNOC announced investments of almost $6 billion (AED22 billion) in the form of procurement awards to top-tier contractors for Wellheads and related components, Downhole Completion Equipment (DCE) and related services, and Liner Hangers and Cementing Accessories.