The contracts will help accelerate drilling activities to increase ADNOC’s crude oil production capacity to five million barrels per day (mmbpd) by 2030
The Abu Dhabi National Oil Company (ADNOC) has granted contracts worth around $6bn (AED22bn) to top-tier contractors for drilling growth.
The investment will enable the company to accelerate drilling activities for increasing its crude oil production capacity to five million barrels per day (mmbpd) by 2030.
Expected to help achieve gas self-sufficiency in the UAE, the contracts are awarded for well wellheads and related components, downhole completion equipment (DCE) and related services, as well as liner hangers and cementing accessories.
The equipment is said to play a significant role in drilling for oil and gas and completing wells.
Under the company’s in-country value (ICV) programme over the duration of the awards, almost 60% of the total value of the awards is expected to be returned to the UAE’s economy.
UAE industry and advanced technology minister Dr Sultan Ahmed Al Jaber said: “ADNOC’s world record investments in drilling-related equipment underlines our commitment to responsibly unlocking our world-scale hydrocarbon resources and expanding our production capacity to continue providing the world with some of the least carbon-intensive barrels for decades to come.
“The awards were secured at highly competitive rates, enabling substantial cost savings for ADNOC and underpinning our broader efforts to drive commerciality and value across our entire portfolio.”
TechnipFMC and Baker Hughes UAE agents, Gulf Automation Services & Oilfield Supplies (GASOS) and Al Ghaith Oilfield Supplies & Services Company have secured contracts worth around $3.27bn (AED12bn) for wellheads and related components. These contracts have a term of 10 years.
Schlumberger Middle East and Weatherford Bin Hamoodah have secured contracts worth up to $2.34bn (AED8.6bn) for the downhole completion equipment and related services.
Schlumberger’s contract is valued at around $1.41bn (AED5.18bn), while Weatherford’s contract is valued up to $931bn ((AED3.42bn). With an option to expand for two years, these contracts are valid for five years.
With an option to expand for two years, the five-year contracts worth up to $337m (AED1.24bn) were awarded for liner hangers and cementing accessories.
Weatherford Bin Hamoodah and Uni-Arab Engineering & Oilfield Service have secured contracts for liner hangers, while Al Ghaith Oilfield Supplies & Services, Best Pick General Trading and Al Mansoori Specialized Engineering have secured contracts for cementing accessories.
In September this year, ADNOC, through its subsidiary ADNOC Drilling, entered into collaboration with drilling solutions provider Helmerich & Payne (H&P) for the acquisition of rigs.