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    ADNOC announces $6bn investment to enable drilling growth

Summary

The state-owned company is looking to boost its crude oil production capacity to 5mn barrels/day by 2030 and achieve gas self-sufficiency for the UAE.

by: Shardul Sharma

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ADNOC announces $6bn investment to enable drilling growth

The Abu Dhabi National Oil Company (ADNOC) on November 16 announced investments worth up to almost $6bn to enable drilling growth. The state-owned company is looking to boost its crude oil production capacity to 5mn barrels/day by 2030 and achieve gas self-sufficiency for the UAE.

The investments are in the form of procurement awards to contractors for wellheads and related components, downhole completion equipment and related services, and liner hangers and cementing accessories.  The announcement was made at the Abu Dhabi International Petroleum Exhibition and Conference and follows the recent listing of ADNOC Drilling on the Abu Dhabi Securities Exchange.

The procurement award for wellheads and related components is worth up to $3.27bn. Gulf Automation Services & Oilfield Supplies, UAE agents for TechnipFMC and Al Ghaith Oilfield Supplies & Services Company, UAE agents for Baker Hughes, secured the awards with both companies having an equal split of the scope which runs for 10 years, ADNOC said. 

The procurement award for downhole completion equipment and related services is worth up to $2.34bn. Schlumberger and Weatherford Bin Hamoodah Company secured the awards. Schlumberger’s scope is valued at up to $1.41bn while Weatherford’s scope is valued at up to $931mn. The award runs for five years with an option to extend for two years.

The procurement award for liner hangers and cementing accessories is worth up to $337mn and runs for five years with an option to extend for two years, ADNOC said.  The award for liner hangers was made to Weatherford and Uni-Arab Engineering & Oilfield Service, UAE agents for Baker Hughes, while the award for cementing accessories was made to Al Ghaith Oilfield Supplies & Services, Best Pick General Trading and Al Mansoori Specialized Engineering.

Almost 60% of the total value of the awards could flow back into the UAE’s economy under ADNOC’s in-country value programme over the duration of the awards, the company said.