Abu Dhabi National Oil Company (ADNOC) has awarded a $1.53 billion contract to ADNOC Drilling to support the expansion of the parent company's offshore operations and its goal of increasing crude oil output capacity to meet growing global demand. The two-year contract, awarded by ADNOC Offshore, covers the provision of 12 jack-up rigs, two island rigs, and the associated integrated drilling services (IDS), a statement showed. Over 80% of the award value will flow back into the UAE economy under ADNOC's In-Country Value program. This award will serve ADNOC’s target to increase its crude oil production capacity to 5 million barrels per day by 2030 and achieve gas self-sufficiency for the UAE. Since ADNOC Drilling launched its IDS offering in 2018, the company has enabled more than $250 million (AED 917.5 million) in savings for its customers through the end-to-end delivery of drilling and completion services. Crucial quote “Adnoc Offshore will continue to responsibly harness the energy in Abu Dhabi’s waters, as we increase production capacity to meet the world’s growing demand for energy with lower carbon intensity oil and gas,” said Yaser Almazrouei, ADNOC's upstream executive director, in a statement. ADNOC is a majority shareholder of ADNOC Drilling, with an 84% stake, while US energy services company Baker Hughes has a 5% shareholding and US contract oil and gas driller Helmerich & Payne holds 1%.
Listed on the Abu Dhabi main stock market last year, ADNOC Drilling has rapidly expanded operations in recent months.
The company owns 99 rigs, making it one of the largest fleets in the Middle East. It acquired in September two offshore jack-up rigs for a value of $140 million (AED 514.23 million), expecting them to start operations by the end of 2022.
In August, ADNOC Drilling won two contracts worth $1.5 billion and $1.9 billion from ADNOC Offshore to boost production capacity. Earlier in July, it also received two contracts worth $2 billion linked to ADNOC's Hail and Ghasha development project in July.
ADNOC Drilling saw its first-half net profit surge by 34% to $379 million (AED 1.4 billion), compared to the year-ago period, thanks to higher revenue from oilfield services.
The company's market capitalization was at $15.2 billion (AED 55.7 billion) as of October 10, 2022.
