ADNOC Drilling secures $1.7 billion drilling contract to deliver 144 unconventional oil and gas wells in UAE

(WO) – ADNOC Drilling Company has been awarded, by ADNOC, a $1.7 billion contract to provide drilling and associated services for the recovery of unconventional energy resources. The contract will see Turnwell deliver 144 unconventional oil and gas wells.

To service the contract, and explore the considerable opportunities in unconventional resources, ADNOC Drilling has incorporated a new company, Turnwell Industries LLC OPC (“Turnwell”).

ADNOC Drilling has also signed a term sheet to enter into a strategic partnership with Schlumberger Middle East SA (“SLB”) and Patterson-UTI International Holdings, Inc. The new company will be primarily engaged in unconventional drilling operations.

Spearheading unconventional energy drilling development within the Middle East region and securing the UAE’s unconventional energy needs and resources, ADNOC Drilling will leverage innovations in AI smart drilling design, completions engineering, and production solutions.

This will be enabled by ADNOC Drilling’s recent joint venture with Alpha Dhabi, Enersol, which will see its scalable technology ecosystem bolstered through investments in – and acquisitions of – AI-enabled solutions and innovative technologies.

This initial phase of unconventionals development is expected to employ up to nine land rigs, of which five are already included in ADNOC Drilling’s fleet as of Dec 31, 2023. The contract is expected to start contributing to ADNOC Drilling’s revenue towards the second half of this year.

Unconventional energy refers to oil and gas resources trapped in subsurface reservoirs requiring additional technology and processes to unlock them. Abu Dhabi today holds an estimated 220 Bbbl of unconventional oil and 460 Tcf of unconventional gas in place. The opportunity in unconventional energy presents outstanding scale with the production potential comparable to some of the most plentiful unconventional energy resources in the U.S.

Commenting on the announcement, Abdulrahman Abdulla Al Seiari, Chief Executive Officer, ADNOC Drilling, said. “Abu Dhabi’s unconventional energy resources are among the world’s largest. This award, for 144 wells is just the beginning. It represents a transformational opportunity for ADNOC Drilling as the UAE’s world class unconventional energy resources will require many thousands more wells and we are in a prime position to deliver them.

‘’It represents a significant expansion of our operations and specialist capabilities and to help us with that, we have set up a new company called Turnwell, and have signed a term sheet with SLB and Patterson-UTI, for potential partnership and support with the latest technology, specialist services and innovations in the unconventional energy drilling space subject to signing definitive agreements and any necessary regulatory approvals.”