ADNOC awards five services contracts worth $1.8bn
UAE's Abu Dhabi National Oil Company (ADNOC) has signed framework agreements worth $1.83bn with five drilling services contractors, aiming to ramp up output at upstream oil and gas assets, ADNOC said August 31.
The five-year framework deals cover field services to be provided at ADNOC projects both onshore and offshore, with an option to extend for a further two years.
ADNOC says over three-quarters of the contract value could be returned to UAE's economy, supporting jobs and growth through ADNOC's "in-country value" programme. Since November 2021, ADNOC has awarded over $11bn in drilling agreements to contractors.
Contracts were awarded to Al Ghaith Oilfield Supplies and Services Company, Al Mansoori Directional Drilling Services (Al Mansoori), Schlumberger Middle East (Schlumberger), Haliburton Worldwide Abu Dhabi (Haliburton) and Weatherford Bin Hamoodah (Weatherford). Each company was successful following a competitive tender.
ADNOC says the new framework deals will support contract work penetrating thousands of new wells, saving expenditures running into the nine-figure dollar range. The UAE wants to bring production capacity to 5bn barrels/day before 2030, as part of plans to become self-sufficient in gas and produce more "low-carbon" crude oil.
Yaser Saeed Almazrouei, upstream executive director at ADNOC, said: "As ADNOC responds to rising global energy demand, we are 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.”