ADNOC Drilling Awarded $980 Million to Unlock Offshore Energy Sources

ADNOC Drilling Awarded $980 Million to Unlock Offshore Energy Sources

/ Oil & Gas / Tuesday, 18 October 2022 12:31

Abu Dhabi National Oil Company (ADNOC) awarded 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.

This award will leverage ADNOC Drilling’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 contributes to global energy security.”

This newest 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 (AED5.58 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 component to delivering on these strategic objectives. ADNOC Drilling’s rig fleet spans 105 owned rigs, including 28 offshore jack-up units, making it one of the largest operational jack-up fleets in the world.

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