The Abu Dhabi National Oil Company, ADNOC, today announced it has achieved cost savings of $2 billion (AED 7.36 billion) over the past five years by leveraging advanced technologies and digitalization to enhance drilling efficiencies and optimize operations.
In addition to advanced technologies, ADNOC unlocked the cost savings and efficiency gains by harnessing fully integrated drilling services, IDS, and innovative techniques to improve drilling performance and well economics through several initiatives.
A key enabler of the $2 billion cost savings is ADNOC’s Real Time Data Monitoring Centre, RTMC, which monitors up to 120 well sites simultaneously in real-time and is powered by Big Data from live and historical operations. The RTMC collects information to track drilling performance and well delivery progress, enabling ADNOC to optimize drilling operations by reducing non-productive time and enhancing productivity.
By the end of 2019, the RTMC had facilitated a reduction in well duration by 30 %, providing cost savings of about $1 billion (AED 3.68 billion). The savings underscore how ADNOC is delivering on its objectives of creating a more profitable upstream business and strengthening its position as a global leading low-cost producer of crude oil, as part of its 2030 strategy.
Yaser Saeed Almazrouei, ADNOC Upstream Executive Director, said, "The cost savings ADNOC unlocked highlight how we are accelerating the use of advanced technologies, digitalization and innovative drilling techniques to drive performance and reinforce our position as a leading provider of comprehensive drilling and well construction services while supporting our strategic objectives of creating a more profitable upstream business and maximizing value for the UAE."
Abdulrahman Abdullah Al Seiari, CEO of ADNOC Drilling, said, "The fact we have enabled substantial cost savings for ADNOC underlines our drive to enhance our capabilities and competitiveness. As a critical link in ADNOC’s upstream value chain, providing fully integrated drilling and associated services, we are reinforcing our performance to better support the delivery of ADNOC’s 2030 strategy.
This announcement was made at the 16th annual Rig Owners Seminar, which took place virtually. The event is organized by ADNOC Drilling, a subsidiary of ADNOC, in cooperation with DNV GL and held on the sidelines of the Abu Dhabi International Petroleum Exhibition and Conference, ADIPEC.