ADNOC Drilling wins five-year drilling contract worth $412 million

(WO) – ADNOC Drilling Company confirmed the award of a five-year contract for the provision of Integrated Drilling Services (IDS) totaling $412 million from ADNOC Offshore commencing in the second quarter of 2023.

ADNOC Drilling will provide IDS for the development of the Upper Zakum field, the largest producing field in ADNOC’s offshore portfolio. The application of the services provided by ADNOC Drilling will add to the efficiency of production at the project, deliver significant cost savings, and contribute to ADNOC’s plans to responsibly accelerate production capacity growth as global demand for energy continues to increase.

Abdulrahman Abdullah Al Seiari, Chief Executive Officer of ADNOC Drilling, commented, “This contract award further demonstrates the delivery of our strategic objective to expand our Oilfield Services (OFS) business as we continue to work towards our goal of further doubling OFS revenues by 2025. This contract, alone, will add some 20% to our annual revenue compared with 2022. Our comprehensive market-leading drilling and completion services offering improves operational performance and efficiency, delivering considerable cost savings and reductions in well delivery times for our customers.”

In 2022, ADNOC Drilling had 40 operational IDS rigs, with OFS revenue reaching $405 million, an increase of 23% on the previous year. The Company has guided the market to expect the segment to generate $500 - $550 million in revenue in 2023.

Previous IDS contract awards in 2022 include a $1.3 billion award for the Ghasha Mega-project, $1.6 billion award for integrated drilling fluid services and a $777 million award for wireline and perforation services.