Adnoc has dished out five framework agreements for directional drilling and logging while drilling (LWD), worth $1.83 billion.
It awarded the contracts to Al Ghaith Oilfield Supplies and Services Company, Al Mansoori Directional Drilling Services, Schlumberger Middle East (PARIS:SLB), Haliburton Worldwide Abu Dhabi (NYSE:HAL) and Weatherford Bin Hamoodah Company (NASDAQ:WFRD).
Adnoc said that 75% of the contract awards would flow back into the local economy. The deals came after a competitive tender process.
The framework agreements run for five years, with an option for two more.
Adnoc Upstream executive director Yaser Saeed Almazrouei said the company was “responsibly ramping up drilling activities to further unlock Abu Dhabi’s oil and gas resources which have some of the lowest carbon intensity in the world. These awards build on our ongoing investments in drilling services and they will deliver substantial in-country value for the nation to support economic growth and diversification, in line with the UAE Leadership’s wise directives.”
Adnoc intends to drill “thousands of new wells”. It aims to boost capacity to 5 million barrels per day by 2030. In addition to its oil production target, the company also aims to reach self sufficiency for the United Arab Emirates.
The state-owned Abu Dhabi producer said it was working to optimise its procurement approach. As such, it is working to secure long-term contracts from a small group of suppliers “at highly competitive rates”.
Since November 2021, the company has signed up drilling agreements worth more than $11 billion. These cover wellheads and related components, downhole completion equipment and related services, liner hangers, cementing services, wireline logging and directional drilling.