Dubai: ADNOC Drilling has awarded a five-year ‘framework agreement’ of up to $1.6 billion for integrated drilling fluids services, to support the parent company’s lower-cost and lower-carbon intensive production capacity. The contract award brings the total value of awards confirmed by ADNOC Drilling this year to $8.85 billion, of which $1.15 billion is incremental to previously disclosed revenue guidance.
“Integrated drilling fluids services are crucial in support of delivering the wells needed to meet ADNOC’s strategy,” said Abdulrahman Abdullah Al Seiari, CEO of ADNOC Drilling. “This award, one of several multi-billion dollar long-term contracts that we have secured in 2022, reaffirms our strategic value to ADNOC not just as a drilling provider but as a major OFS (oli field services) player.
“Contracts of this scale help us to ensure that we deliver strong and sustained growth for the UAE and ADNOC Drilling’s shareholders. The addition of $750 million in above-guidance revenue solidifies that growth trajectory.”
The company plans to double OFS revenues by 2025.
- For ADNOC Drilling, new deal matters quite a bit. Here's why:
- The award is among the largest in the industry and directly supports the expansion of ADNOC’s lower-cost and lower-carbon intensive production capacity.
- ADNOC Drilling recently delivered an extended reach well at 50,000ft in ADNOC's giant Zakum offshore field, tapping into an undeveloped part of the reservoir.
- This well helps unlock an additional production capacity of 15,000 BPD and achieves this without the need for further costly infrastructure and with minimal environmental footprint and is a world’s longest extended reach well.