ADNOC drilling contracts as UAE ramps up oil and gas production

Abu Dhabi National Oil Company (ADNOC) announced a $980 million contract with ADNOC Drilling to lease two jack-up offshore drilling rigs and associated manpower and equipment.

The contract, awarded by ADNOC Offshore, will support ADNOC’s expansion of production capacity to meet growing global demand for low-carbon-intensity oil and gas, according to a statement.

Arthur Said AlmazruiADNOC Upstream Executive Director added: “This incentive jack-up rig lease supports our continued efforts to responsibly release our low carbon intensity oil and gas resources together with our strategic international partners, and provide global energy contribute to safety.

“ADNOC Drilling’s world-class capabilities continue to be a key enabler of these efforts. Importantly, the award will also deliver significant domestic value in driving economic growth and diversification, based on the wise direction of the UAE leadership.”

He said the award will leverage the company’s world-class expertise and state-of-the-art drilling fleet to further unlock the UAE’s offshore energy resources, noting that more than 80% of the award’s value will flow back into the UAE’s economy. Support local economic growth and diversification under ADNOC’s Domestic Value (ICV) program.

ADNOC Drilling is the largest drilling company in the Middle East. Its drilling fleet has 105 owned rigs, including 28 offshore jack-up rigs – one of the largest fleets of its kind in the world.

It said the company’s large rig fleet and expertise were key drivers for it to win and service large drilling contracts for its clients.

The award brings the total value awarded to ADNOC Drilling in 2022 by ADNOC Offshore to $5.95 billion to maximize the value of Abu Dhabi’s offshore oil and gas resources, the statement continued.

In early October, the company was awarded a $1.52 billion contract to provide jack-up and island rigs and related integrated drilling services. This follows two contracts worth $3.43 billion in August to lease eight jack-up rigs.

ADNOC Offshore is supporting ADNOC’s efforts to expand production capacity to 5 million barrels per day (mbpd) by 2030 and achieve gas self-sufficiency in the UAE, and ADNOC drilling is critical to achieving these strategic goals, the statement concluded.