STOCK ADNOC
ADNOC's latest contract stipulates energy-efficiency measures to 'meet the world’s growing demand for energy with lower carbon intensity oil and gas'. Image Credit: Shutterstock

Dubai: Abu Dhabi’s energy giant ADNOC awarded a Dh5.62 billion contract to ADNOC Drilling, to support expansion of offshore operations. The two-year contract covers for the provision of 12 jack-up rigs and two island rigs and associated Integrated Drilling Services (IDS).

The latest project award also takes into account to ‘responsibly increase production capacity and meet the growing global demand for reliable, lower carbon intensity oil and gas’. The latest contract will support further expansion of ADNOC’s crude oil production capacity to 5 million barrels per day (mmbpd) by 2030 and gas self-sufficiency for the UAE. ADNOC Drilling has provided IDS to

Since ADNOC Drilling launched the IDS in 2018, the Abu Dhabi company has enabled more than Dh917.5 million in savings 'through the successful end-to-end delivery of drilling and completion services'. ADNOC Drilling has provided IDS to ADNOC Offshore since 2019.

“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, the Upstream Executive Director at ADNOC.

Over 80 per cent of the award value will flow back into the UAE’s economy under ADNOC’s In- Country Value (ICV) program. "ADNOC Drilling is a world leader in drilling and completion services," said Almazrouei. "Their deep expertise and wide technical capability will maximize value and minimize the environmental footprint of every well as ADNOC expands its production capacity."

Our status as a key enabler of ADNOC’s production capacity expansion targets offer investors a solid opportunity for sustained and predictable revenue growth, coupled with market leading cash flows and profitability margins, enabling our progressive dividend policy.

- Abdulrahman Abdullah Al Seiari, CEO of ADNOC Drilling
ADNOC Drilling's rig investments paying off
“Contracts like this help ensure we continuously deliver strong and sustained growth while further driving shareholder value. Our ambitious rig fleet expansion program, to which we have made a significant capex commitment, is making the delivery of such contracts possible.

“Our status as a key enabler of ADNOC’s production capacity expansion targets offer investors a solid opportunity for sustained and predictable revenue growth, coupled with market leading cash flows and profitability margins, enabling our progressive dividend policy.”

- Abdulrahman Abdullah Al Seiari, CEO of ADNOC Drilling