Abu Dhabi National Oil Company (ADNOC) announced a series of framework agreement awards worth some $2 billion, as it embarks on a new drilling programme.
ADNOC said the awards form a record investment in drilling-related equipment and services in support of its strategy to boost oil production capacity to 5 million barrels per day (bpd) by 2030 and help the United Arab Emirates reach gas self-sufficiency.
The operator said it expected “thousands of new wells” to be drilled in the coming years.
The agreements, covering wireline logging and perforation services, were awarded to ADNOC Drilling and local units of Schlumberger, Halliburton and Weatherford, following a competitive tender process.
Wireline logging involves continuously measuring the properties of rock formations to guide drilling operations while perforation creates tunnels in the wellbore to allow fluid to flow in from the reservoir.
The framework agreement awards cover ADNOC’s onshore and offshore fields and will run for five years, with an option for a further two years.
The state-owned energy giant also said the companies would work to identify local manufacturing partners, creating further employment opportunities for UAE nationals, and that potentially more than 80% of the contract value could flow back into the UAE economy under its “in-country value” drive.
ADNOC Drilling, which was listed in an IPO in October, secured the largest share of awards for services including cased hole and open hole as well as perforation.
Today’s agreements follow a tranche of $6bn drilling contracts awarded in November covering wellheads, downhole completion equipment, liner hangers and cementing accessories – also in pursuit of the group’s 2030 production goal.
ADNOC managing director and group CEO, Sultan Ahmed Al Jaber said: “The framework agreements announced today are a continuation of ADNOC’s unprecedented investment in services to enable the expansion of drilling activity required to responsibly unlock the UAE’s leading low-cost and low-carbon intensity oil as well as the nation’s gas resources.
“Not only do these awards support our 2030 strategy, they are expected to deliver over 80% of in-country value to the UAE and align with the UAE’s ‘Principles of the 50’ economic blueprint for sustainable growth.”
ADNOC upstream executive director Yaser Saeed Almazrouei added: “The award to ADNOC Drilling demonstrates its robust offering and capabilities as well as its integral role in ADNOC’s future drilling activities. The awards to all four companies will deliver substantial in-country value, and create new job opportunities for UAE nationals, in line with the leadership’s wise directives.”
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