Adnoc Drilling awarded nearly $1 billion contract to further unlock UAE's offshore energy resources

Over 80% of the agreement value will flow back into the country's economy under the oil company's In-Country Value (ICV) programme

By Wam

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Photo: Wam
Photo: Wam

Published: Thu 13 Oct 2022, 11:37 AM

Last updated: Thu 13 Oct 2022, 5:34 PM

On Thursday, the Abu Dhabi National Oil Company (Adnoc) announced the award of a contract worth Dh3.6 billion ($980 million) to Adnoc Drilling to hire two jack-up offshore rigs, as well as the associated equipment and manpower.

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, in terms of rig fleet size. 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 per cent of the contract value will flow back into the UAE's economy under Adnoc's In-Country Value (ICV) programme, 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 remain 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 contract brings the total value of awards from Adnoc Offshore to Adnoc Drilling in 2022 to Dh21.84 billion ($5.95 billion) to maximise value from Abu Dhabi's offshore oil and gas resources.

Just this month, Adnoc Drilling was awarded a contract worth Dh5.58 billion ($1.52 billion) to provide jack-up and island rigs, as well as associated Integrated Drilling Services (IDS). This followed two awards in August, worth Dh12.59 billion ($3.43 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. Adnoc Drilling's support is 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.


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