Adnoc eyes new opportunities after a major milestone in drilling
State owned firm to target 4m barrels per day of production capacity by end of 2020
Abu Dhabi: Abu Dhabi National Oil Company (Adnoc) on Sunday announced it is looking at new growth opportunities and revenue potential after the company’s drilling unit achieved a major milestone by completing its first fully ‘integrated drilling services’ well in Al Dabbyia onshore field.
The well was the first to be drilled in a fully integrated way following the announcement of a strategic partnership between Adnoc and Baker Hughes, a GE company (BHGE) last year, Adnoc said in a statement.
Baker Hughes bought a 5 per cent stake in Adnoc drilling for $500 million to boost its operations in the region.
“Today marks an important milestone in Adnoc Drilling’s history as the company sets out to deliver fully integrated services across the drilling value chain, unlocking new growth opportunities and revenue potential,” said Abdul Munim Saif Al Kindy, Adnoc Upstream Executive Director.
“In partnership with BHGE, Adnoc Drilling will generate predictable, long-term revenue streams and growth in the market. By leveraging a complete range of drilling services, the company will also enhance its operational performance, in line with Adnoc’s 2030 smart growth strategy, which seeks to increase its crude oil and gas production capacity and optimise costs and efficiencies to create a more profitable upstream business.”
Adnoc plans to grow its conventional drilling activity by 40 per cent by 2025 and substantially ramp up the number of its unconventional wells, as it targets 4 million barrels of oil production capacity per day by the end of 2020 and 5 million by 2030.
Abu Dhabi’s Supreme Petroleum Council recently approved Dh486 billion in capex to support Adnoc’s 5-year growth plans, including its gas strategy to become self-sufficient & a net gas exporter.