Fossil Energy – Drilling
Abu Dhabi National Oil Company (ADNOC) has awarded two contracts totaling more than $3.4 billion (AED12.6 billion) to ADNOC Drilling to hire eight jack-up offshore rigs.
“The contracts, valued at $1.5 billion (AED 5.6 billion) and $1.9 billion (AED 7 billion) respectively, awarded by ADNOC Offshore, will support the expansion of ADNOC’s crude oil production capacity to five million barrels per day (mmbpd) by 2030 and enable gas self-sufficiency for the UAE,” ADNOC said.
ADNOC said that, over the life of the 15-year contracts, ADNOC Drilling’s rig fleet will enable ADNOC and its strategic international partners further to unlock Abu Dhabi’s offshore oil and gas resources, creating significant value for ADNOC, its partners, and the UAE.
“Over 80% of the value of the awards will flow back into the UAE’s economy under ADNOC’s successful In-Country Value (ICV) program, supporting local economic growth and diversification,” ADNOC said.
Dr. Sultan Ahmed Al Jaber, Minister of Industry and Advanced Technology and ADNOC Managing Director and Group CEO, said: “This world-leading investment will significantly expand our drilling activity to accelerate growth, drive value and responsibly unlock the UAE’s resources in response to globally rising demand for energy. ADNOC Drilling’s state-of-the-art fleet and market-leading capabilities will be a key enabler as ADNOC strengthens its position as a leading low-cost and low-carbon energy producer. We are focused on delivering on our 2030 strategy, in support of the directives of our wise leadership to grow and diversify the UAE’s economy.”
The jack-up rigs will be hired along with manpower and equipment to support drilling operations across ADNOC’s offshore fields, which account for about half of ADNOC’s production capacity.