Abu Dhabi – Mubasher: Abu Dhabi National Oil Company (ADNOC) has awarded a $1.53 billion contract to ADNOC Drilling Company to back the expansion of ADNOC’s offshore operations.
The two-year deal covers the provision of 12 jack-up rigs, two island rigs, and the associated Integrated Drilling Services (IDS), according to a press release.
The agreement will increase ADNOC’s crude oil production capacity to reach 5 million barrels per day (mbpd) by 2030 and help in achieving gas self-sufficiency in the UAE.
More than 80% of the award value will be pumped into the UAE’s economy under ADNOC’s successful In-Country Value (ICV) programme to endorse local economic growth and diversification.
Yaser Saeed Almazrouei, ADNOC Upstream Executive Director, said, “Through this award, 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.”
Almazrouei added: “The substantial in-country value generated through this contract will support the directives of our wise leadership to grow and diversify the UAE economy.”
In a bourse disclosure, ADNOC Drilling noted that the financial impact of the project will reflect on its income statements during 2022-2024. The contract aligns with the company’s expansion plans to boost revenue growth and profits.
Last month, the ADX-listed company acquired two premium offshore jack-up drilling units worth $140 million, which marked its fourth transaction in 2022.
During the first six months (6M) of 2022, ADNOC Drilling registered net profits worth $379.31 million, up 34% from $281.58 million in the year-ago period.
