ADNOC Drilling secures $806m deal for AI-powered island rigs

Abu Dhabi: Drilling has landed a fresh $806 million contract from ADNOC Offshore to deliver three new build artificial island rigs—its second such award in less than a year. The long-term deal, which follows a similar contract in July 2024, takes the total to six rigs as ADNOC Drilling ramps up toward a 151-plus rig target by 2028.

The high-spec rigs will support operations at the offshore Zakum development, part of ADNOC’s broader strategy to unlock maximum value from Abu Dhabi’s offshore reserves.

“These are not just rigs—they’re AI-enhanced, next-gen drilling platforms designed to redefine safety, uptime and operational efficiency,” said Abdulrahman Abdulla Al Seiari, CEO of ADNOC Drilling. “This award extends our earnings visibility into the next decade and reinforces our role as ADNOC’s key enabler for production growth.”

AI meets offshore with Honghua

The new rigs will be co-developed with Honghua Group in a tech-forward partnership focused on embedding artificial intelligence and advanced analytics into rig design. The aim: real-time monitoring, predictive maintenance, and performance optimization.

The newly awarded island rigs feature an AI-integrated design, enabling enhanced safety, efficiency, and real-time performance monitoring. Built with Extended Reach Drilling (ERD) capability, the rigs are engineered to handle complex well architectures more effectively.

Additionally, their walking systems allow for seamless movement between well slots without requiring rig dismantling—significantly improving uptime and operational continuity. These rigs are specifically optimized for ADNOC’s innovative artificial islands, which are already home to the world’s longest wells, including a recently drilled record-setter measuring 53,000 feet.

“These advanced rigs will be instrumental in meeting global energy demand while pushing the boundaries of drilling innovation,” added Tayba Abdul Rahim Al Hashemi, CEO of ADNOC Offshore.

Long-term earnings visibility

The rigs are scheduled to join ADNOC Drilling’s fleet between 2027 and 2028. Capex is expected to be in line with the July 2024 order. The company says the contracts align with its medium-term fleet guidance and provide long-term revenue visibility through 2038.

With this award, ADNOC Drilling continues to sharpen its competitive edge in AI-driven rig innovation while delivering sustainable returns to shareholders. The deal also reflects ADNOC’s continued investment in local upstream capabilities amid rising global demand.