ADNOC Drilling Awarded Close to $1 Billion Contract to Further Unlock UAE’s Offshore Energy Resources
Contract to hire two jack-up rigs awarded by ADNOC Offshore
Award will support ADNOC’s production capacity growth as it responds to growing global demand for lower carbon intensity oil and gas
Over 80% of the contract value will flow back into the UAE’s economy under ADNOC’s In-Country Value program
Abu Dhabi, UAE – October 13, 2022: Abu Dhabi National Oil Company (ADNOC) announced today, the award of a contract worth $980 million (AED3.6 billion) to ADNOC Drilling to hire two jack-up offshore rigs and associated manpower and equipment. The contract, awarded by ADNOC Offshore, will support the expansion of ADNOC’s production capacity as it responds to the growing global demand for lower carbon intensity oil and gas.
ADNOC Drilling is the largest national drilling company in the Middle East by rig fleet size and this award will leverage the company’s world-class expertise and state-of-the-art rig fleet to further unlock the UAE’s offshore energy resources. Over 80% of the award value will flow back into the UAE’s economy under ADNOC’s In-Country Value (ICV) program, supporting local economic growth and diversification.
Yaser Saeed Almazrouei, ADNOC Upstream Executive Director said: “This award for the hire of jack-up rigs supports our ongoing efforts to responsibly unlock our lower carbon intensity oil and gas resources, alongside our strategic international partners, and contribute to global energy security. ADNOC Drilling’s world-class capabilities continues to be a key enabler of these efforts. Importantly, this award will also deliver significant in-country value to drive economic growth and diversification, in line with the UAE leadership’s wise directives.”
This award brings the total value of awards from ADNOC Offshore to ADNOC Drilling in 2022 to $5.95 billion (AED21.84 billion) to maximize value from Abu Dhabi’s offshore oil and gas resources. In October, ADNOC Drilling was awarded a contract worth $1.52 billion (AED 5.58 billion) for the provision of jack-up and island rigs and associated Integrated Drilling Services. This followed two awards in August worth $3.43 billion (AED12.59 billion) to hire eight jack-up rigs.
ADNOC Offshore is supporting ADNOC’s drive to expand production capacity to five million barrels per day (mbpd) by 2030 and enable gas self-sufficiency for the UAE, and ADNOC Drilling is a critical to delivering on these strategic objectives. ADNOC Drilling’s rig fleet spans 105 owned rigs, including 28 offshore jack-up units, one of the largest operational jack-up fleets in the world. The company’s expansive rig fleet and expertise are key drivers in its ability to win and service large-scale drilling contracts for customers such as ADNOC Offshore.