Abu Dhabi – Mubasher: Abu Dhabi National Oil Company (ADNOC) awarded ADNOC Drilling Company a contract worth $980 million (AED 3.60 billion) to hire two jack-up offshore rigs along with all manpower and equipment required for their project.
The agreement will support ADNOC’s expansion plans in response to the increasing global demand for lower carbon intensity oil and gas, according to a recent press release.
More than 80% of the award value will be invested in the UAE’s economy under ADNOC’s In-Country Value (ICV) programme to bolster local economic growth and diversification.
Yaser Saeed Almazrouei, ADNOC Upstream Executive Director, said: “This award for the hire of jack-up rigs supports our ongoing efforts to responsibly unlock our lower carbon intensity oil and gas resources, alongside our strategic international partners, and contribute to global energy security.”
In a bourse filing, ADNOC Drilling pointed out that the project will reflect on its financial results during 2022-2023. The agreement comes in line with the ADX-listed firm’s growth strategy and the three-year guidance on capital expenditure to boost its revenues.
In 2022, ADNOC Offshore awarded contracts at an aggregated value of $5.95 billion (AED 21.84 billion) to ADNOC Drilling to maximise the value of Abu Dhabi’s offshore oil and gas resources.
Earlier in October, ADNOC Drilling was awarded a contract at a value of $1.53 billion for the provision of 12 jack-up rigs, two island rigs, and the associated Integrated Drilling Services (IDS). This followed two awards in August at a total value of $3.43 billion (AED 12.59 billion) to hire eight jack-up rigs.
The contracts align with ADNOC’s objective to increase production capacity to 5 million barrels per day (mbpd) by 2030 and achieve gas self-sufficiency in the UAE.
During the first half (H1) of 2022, ADNOC Drilling logged net profits of $379.31 million, a jump of 34% from $281.58 million in H1-21.
