Adnoc Offshore has awarded a $1.53 billion contract to the company’s Adnoc Drilling unit.
The drilling company will provide jack-ups and island rigs, in addition to integrated drilling services (IDS). More than 80% of the contract value will remain in the United Arab Emirates, under Adnoc’s in-country value (ICV) programme.
The contract runs for two years. Adnoc Drilling will provide 12 jack-ups and two island rigs.
“Through this award, Adnoc Offshore will continue to responsibly harness the energy in Abu Dhabi’s waters, as we increase production capacity to meet the world’s growing demand for energy with lower carbon intensity oil and gas,” said Yaser Saeed Almazrouei, Adnoc Upstream Executive Director.
He went on to described Adnoc Drilling as a world leader in drilling and completion services.
“Their deep expertise and wide technical capability will maximise value and minimize the environmental footprint of every well as Adnoc expands its production capacity. The substantial [ICV] generated through this contract will support the directives of our wise leadership to grow and diversify the UAE economy.”
The company said the work would capitalise on Adnoc Drilling’s ability to provide services from start to finish.
Adnoc is working on plans to boost oil production to 5 million barrels per day by 2030. It also aims to make the UAE self sufficient in terms of gas production.
Adnoc Drilling has been buying up rigs as it works to expand its service offering this year. In late September, the company said it had signed up to buy two more premium jack-ups for $140 million.
In October 2021, the company had 96 rigs, it aims to reach 122 by the end of 2024.