Abu Dhabi – Mubasher: ADNOC Drilling Company was awarded a five-year framework agreement worth up to $1.60 billion for integrated drilling fluids services (IDFS), according to a press release.
The award aims to scale up Abu Dhabi National Oil Company’s (ADNOC) lower-cost and lower-carbon production capacity amid increasing global demand for energy.
Moreover, the contract covers ADNOC’s onshore and offshore fields and will add a further $750 million to Oilfield Services (OFS) revenue, equivalent to $150 million annually.
The listed company stated that it intends to double its OFS revenues by 2025, noting that the IDFS award will boost and accelerate its capability towards that objective.
In a bourse filing, ADNOC Drilling indicated that the deal aligns with its expansion plans to foster revenue growth and improve profitability. Meanwhile, the project will reflect on the firm's income statements during 2024-2030.
Abdulrahman Abdullah Al Seiari, CEO of ADNOC Drilling, said: “Integrated drilling fluids services (IDFS)are crucial in support of delivering the wells needed to meet ADNOC’s strategy to increase its production capacity and achieve gas self-sufficiency for the UAE.”
Al Seiari added: “Contracts of this scale help us to ensure that we deliver strong and sustained growth for the UAE and ADNOC Drilling’s shareholders. The addition of $750 million in above-guidance revenue solidifies that growth trajectory.”
The latest contract brings the total agreements awarded to ADNOC Drilling during 2022 to a combined value of $8.85 billion, of which $1.15 billion was added to the company’s previously reported revenues.
Last month, the ADX-listed company won a contract valued at $980 million to hire two jack-up rigs, in addition to a $1.53 billion deal to reinforce ADNOC’s offshore operations.
