ADNOC Drilling, Halliburton and SLB win new deals totaling $4 billion in UAE

The Abu Dhabi National Oil Company (ADNOC) in the United Arab Emirates has awarded three US$4 billion Integrated Drilling Fluid Services (IDFS) framework agreements to support its expanding production capacity to meet growing global demand for energy.

When ADNOC announced the award on Tuesday, it said it was the largest of its kind in the industry.they were awarded ADNOC Drilling, Schlumberger (load balancing), and Halliburton They cover ADNOC’s onshore and offshore fields. The agreements will last for five years, with an option to extend for a further two years.

The contractor will create jobs for UAE nationals and invest in the equipment and chemicals needed to manufacture IDFS locally.

Arthur Said AlmazruiADNOC Upstream Executive Director said: “These record-breaking integrated drilling fluid services framework agreements continue ADNOC’s significant investment in drilling-related services to expand our production capacity and responsibly release the UAE’s leading low-cost, low-carbon-intensity hydrocarbons.”

The framework agreement was awarded following a competitive bidding process. They will save hundreds of millions of dollars in costs through ADNOC’s optimized procurement approach, which focuses on long-term contracts with the best number of suppliers who can deliver reliably at competitive prices.

These agreements will lead to investments in local manufacturing of equipment and facilities, including liquid slurry plants and waste management facilities, as well as key commodity chemicals, underscoring ADNOC’s efforts to create long-term manufacturing opportunities and drive industrial growth in the UAE.

ADNOC Drilling’s framework agreement scope is worth up to US$1.6 billion (AED5.87 billion). This reflects the company’s transformation of its service profile into a fully integrated drilling services (IDS) company after partnering with Baker Hughes to develop its oilfield services division.

ADNOC has awarded over US$16 billion (AED58.72 billion) in drilling-related equipment and service agreements since November 2021, including these awards and others for wellheads, downhole completions, liner hangers, cementing services , wireline logging, directional drilling and logging while drilling.

The IDFS is a must for drilling, which will allow ADNOC to expand its oil production capacity and drive the UAE’s gas self-sufficiency. Some of these services include the provision of products, engineering, technical laboratory support, filtration equipment and solids control equipment.