Adnoc has awarded contracts worth $658 million under framework agreements to secure cementing services.
The Abu Dhabi state-owned company announced deals with Haliburton Worldwide Limited Abu Dhabi, Baker Middle East, Emirates Western Oil Well Drilling & Maintenance Co., NESR Energy Services and Emjel Oil Field Services.
It handed the contracts out in following a competitive tender process. Adnoc said that more than 65% of the value could flow back into Abu Dhabi under the in-country value (ICV) programme.
Furthermore, the contracts should provide “hundreds of millions of dollars in cost savings” for Adnoc.
The contracts run for five years, with an option for an additional two years.
“The awards for cementing services will support the ongoing expansion of ADNOC’s drilling activities as we grow our production capacity, strengthening our position as a reliable global supplier of some of the world’s most carbon efficient barrels,” Yaser Saeed Almazrouei, ADNOC Upstream Executive Director, said.
“In line with the UAE Leadership’s wise directives and as part of our strategy, we are prioritising in-country value and these awards will enable careers for UAE nationals and new opportunities for the private sector, directly supporting the objectives of the UAE’s Principles of the 50.”
These cementing services take Adnoc’s framework agreements on drilling to more than $8.5 billion since November 2021.
The contracts will support it to drill “thousands of new wells”, Adnoc said, citing its plan to increase production capacity to 5 million barrels per day by 2030.