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Adnoc is looking to, through this investment, support its production capacity expansion to 5 million barrels per day (mmbpd) by 2030
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The investment is in the form of three contracts awarded by Adnoc Offshore to Schlumberger, Adnoc Drilling, and Halliburton
The Abu Dhabi National Oil Company will invest $763.7 million in integrated rigless services across six of its artificial islands, said local reports on Monday, July 19.
The company, also known by its abbreviation Adnoc, is looking to — through this investment — support its production capacity expansion to 5 million barrels per day (mmbpd) by 2030.
The investment is in the form of three contracts awarded by Adnoc Offshore to Schlumberger, Adnoc Drilling, and Halliburton.
Schlumberger’s share of the award is valued at $381.18 million (AED1.4 billion), Adnoc Drilling’s share is valued at $228.71 million (AED839.58 million), and Halliburton’s share is valued at $153.87 million (AED564.85 million), said the reports.
Over 80% of the total award value will flow back into the UAE’s economy under Adnoc’s In-Country Value (ICV) program over the five-year duration of the contracts, said the local reports. This should allay fears of jobs or wealth being offshored, believe experts.
The six artificial islands said to be covered by the awards are Asseifiya, Ettouk, Al Ghallan, and Umm Al Anbar in the Upper Zakum field, and Al Qatia and Bu Sikeen in the SARB field.
The local reports quoted Adnoc Upstream Executive Director Yaser Saeed Almazrouei as saying: “These important awards for integrated rigless services will drive efficiencies of drilling and related services.
He was also of the opinion that the deals would “optimize costs in our offshore operations as we ramp up our drilling activities to increase our production capacity and enable gas self-sufficiency for the UAE.”
The scope of the contracts reportedly includes coiled tubing services with thru-tubing downhole tools, stimulation services, including equipment and chemicals/fluid systems, surface well testing services, wireline, and production logging services and tools, saturation monitoring, and well integrity.
The local reports also quoted Adnoc Offshore CEO Ahmad Saqer Al-Suwaidi as saying: “These contracts are an important contributor to Adnoc Offshore’s plans to build our production capacity to over 2 million barrels a day in the coming years.”