ADNOC Awards $1.83 Billion Framework Agreements to Ramp Up Drilling

ADNOC Awards $1.83 Billion Framework Agreements to Ramp Up Drilling

/ Oil & Gas / Thursday, 01 September 2022 09:23

ADNOC has announced the awarding of five framework agreements valued at $1.83 billion (AED6.72 billion) for directional drilling and logging while drilling (LWD) to Al Ghaith Oilfield Supplies and Services Company, Al Mansoori Directional Drilling Services (Al Mansoori), Schlumberger Middle East S.A (Schlumberger), Haliburton Worldwide Limited Abu Dhabi (Haliburton) and Weatherford Bin Hamoodah Company LLC (Weatherford), following a competitive tender process.

The framework agreements are the largest such awards in the oil and gas industry and will support its efforts to expand the production capacity of its low-carbon oil and gas resources as a step towards meeting global energy demand.

The awards cover ADNOC’s onshore and offshore fields and will run for five years, with an option for a further two years. Over 75% of the award value could flow back into the UAE economy under ADNOC’s In-Country Value program over the duration of the agreements.

Yaser Saeed Almazrouei, ADNOC upstream executive director, said, "As ADNOC responds to rising global energy demand, we are responsibly ramping up drilling activities to further unlock Abu Dhabi’s oil and gas resources which have some of the lowest carbon intensity in the world. These awards build on our ongoing investments in drilling services and they will deliver substantial in-country value for the nation to support economic growth and diversification, in line with the UAE Leadership’s wise directives."

The framework agreement awards will support ADNOC’s requirement to drill thousands of new wells to expand its production capacity to five million barrels per day (mmbpd) by 2030, enable gas self-sufficiency for the UAE and remain a leading low-cost, low-carbon oil producer. The awards will also enable hundreds of millions of dollars in cost savings.

ADNOC’s procurement approach reflects the market dynamics with a focus on long-term contracts with an optimal number of suppliers for stable and reliable delivery at highly competitive rates. Since November 2021, ADNOC has awarded drilling agreements worth over $11 billion (AED40.37 billion) to top-tier contractors for wellheads and related components, downhole completion equipment and related services, liner hangers, cementing services, wireline logging and directional drilling.

Directional drilling and logging while drilling entails controlling the direction and deviation of a wellbore while drilling to access oil and gas resources and measuring formation properties to enhance production.

Also read: ADNOC Finds Second Gas Resources from Offshore Block 2 In 6 Months
Also read: ADNOC Drilling Receives Contracts Worth $2 Billion for Hail and Ghasha Project
Also read: Two Contracts Worth $3.4 Billion to Boost ADNOC Drilling Offshore Operations

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