Abu Dhabi, UAE – November 12, 2020: The Abu Dhabi National Oil Company (ADNOC) announced, today, it has achieved cost savings of $2 billion (AED7.36 billion) over the past five years by leveraging advanced technologies and digitalization to enhance drilling efficiencies and optimize operations.
In addition to advanced technologies, ADNOC unlocked the cost savings and efficiency gains by harnessing fully integrated drilling services (IDS) and innovative techniques to improve drilling performance and well economics through several initiatives.
The achievement is a testament to ADNOC’s ongoing strategic investments in digitization and state-of-the-art technologies to further enhance performance, maximize value and enable smart growth as part of its digital transformation. It also highlights ADNOC’s focus on driving down costs to reinforce its resilience and agility as it flexibly responds to market dynamics.
A key enabler of the $2 billion cost savings is ADNOC’s Real Time Data Monitoring Center (RTMC) which monitors up to 120 well sites simultaneously in real-time and is powered by Big Data from live and historical operations. The RTMC collects information to track drilling performance and well delivery progress, enabling ADNOC to optimize drilling operations by reducing non-productive time and enhancing productivity.
By the end of 2019, the RTMC had facilitated a reduction in well duration by 30%, providing cost savings of about $1 billion (AED3.68 billion). The savings underscore how ADNOC is delivering on its objectives of creating a more profitable upstream business and strengthening its position as a global leading low-cost producer of crude oil, as part of its 2030 strategy.
Yaser Saeed Almazrouei, ADNOC Upstream Executive Director, said: “The cost savings ADNOC unlocked highlight how we are accelerating the use of advanced technologies, digitalization and innovative drilling techniques to drive performance and reinforce our position as a leading provider of comprehensive drilling and well construction services while supporting our strategic objectives of creating a more profitable upstream business and maximizing value for the UAE. The achievement validates ADNOC’s focus on embedding state-of-the-art technologies across our value chain and is a testament to our commitment to optimize our operations and enhance efficiency throughout our business as we further strengthen our position as one of the lowest-cost producers of crude oil in the world.”
Techniques and initiatives implemented by ADNOC to increase drilling efficiency and enable the cumulative savings of $2 billion include adopting light or linerless casing design, using smart drilling fluids and maximizing offline jobs through batch drilling, improved data acquisition and stimulation jobs performed offline.
Abdulrahman Abdullah Al Seiari, CEO of ADNOC Drilling, said: “The fact we have enabled substantial cost savings for ADNOC underpins our relentless drive to enhance our capabilities and competitiveness. As a critical link in ADNOC’s upstream value chain, providing fully integrated drilling and associated services, we are reinforcing our performance to better support the delivery of ADNOC’s 2030 strategy. As part of this effort, we strengthened our rig fleet and expanded our service offering as well as accelerated our adoption of technology which is enabling us to drill more wells in less time. This is supporting ADNOC to unlock greater value from its conventional and unconventional hydrocarbon resources as we reinforce our competitiveness in any market scenario.”
ADNOC Drilling has also delivered over 100 integrated drilling services (IDS) wells since 2018, achieving an efficiency improvement of more than 35%, which resulted in over $170 million (AED624 million) in savings. This achievement followed the award to Baker Hughes of a five percent share in ADNOC Drilling, transforming the company into a fully integrated drilling business that is capable of delivering start-to-finish drilling and well-construction services. ADNOC’s expanded service offering also includes unconventional methods of extraction.
This announcement was made at the 16th annual Rig Owners Seminar, which took place virtually. The event is organized by ADNOC Drilling, a subsidiary of ADNOC, in cooperation with DNV GL and held on the sidelines of the Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC).
ADNOC’s Rig Owners’ seminar serves as a vital platform for rig owners, classification societies, operating companies, and marine and offshore service providers who convene to exchange knowledge and share best practices on enhancing drilling efficiency, asset integrity, and HSE performance.
The full-day seminar included several technical presentations that covered various aspects of technology adoption in the drilling industry, presented by a group of highly qualified professionals from GCC and international companies.
ADNOC is a leading diversified energy and petrochemicals group wholly owned by the Emirate of Abu Dhabi. ADNOC’s objective is to maximize the value of the Emirate’s vast hydrocarbon reserves through responsible and sustainable exploration and production to support the United Arab Emirates’ economic growth and diversification.
For media inquiries, please contact:
Manager, ADNOC External Relations
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About ADNOC Drilling
ADNOC Drilling is the largest drilling company in the Middle East, and the only national Integrated Drilling Services (IDS) company in the region. It has more than 47 years of experience and operates an expansive fleet of rigs that includes 62 land rigs, 20 jackup rigs, and 11 island rigs that have drilled over 9,000 wells. The company provides a comprehensive portfolio of drilling and well-construction services. To find out more visit: www.adnoc.ae/en/adnoc-drilling