ADNOC has handed its subsidiary ADNOC Drilling (ADX: ADNOCDRIlL) a $980m contract for the hire of two rigs in the UAE.
The deal, which also covers manpower and associated equipment, will support “expansion of ADNOC’s production capacity” to meet growing global demand for “lower carbon intensity oil and gas”.
No further details have been disclosed on what the rigs will be used for by Abu Dhabi’s national oil company.
This deal takes total awards from ADNOC Offshore to ADNOC Drilling in 2022 to $5.95bn.
ADNOC owns 84% of shares in ADNOC Drilling.
The contract will see more than 80% of the award value returned to the UAE economy.
Upstream executive director at ADNOC, Yaser Saeed Almazrouei, 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 continues to be 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.”