The award continues the delivery of material growth in ADNOC Drilling’s Oilfield Services segment
The contract will enable the efficient delivery of completion services at Upper Zakum field and adds 20% to annual revenue compared with 2022
Awards to ADNOC Drilling for Oilfield Services, including IDS, stand at a total of $5.1 billion since January 1, 2022
Abu Dhabi, UAE – April 13, 2023: ADNOC Drilling Company PJSC (“ADNOC Drilling” or ”the Company”) (ADX symbol: ADNOCDRILL / ISIN: AEA007301012) today confirmed the award of a five-year contract for the provision of Integrated Drilling Services (IDS) totaling $412 million from ADNOC Offshore commencing in the second quarter of 2023.
ADNOC Drilling will provide IDS for the development of the Upper Zakum field, the largest producing field in ADNOC’s offshore portfolio. The application of the services provided by ADNOC Drilling will add to the efficiency of production at the project, deliver significant cost savings, and contribute to ADNOC’s plans to responsibly accelerate production capacity growth as global demand for energy continues to increase
Abdulrahman Abdullah Al Seiari, Chief Executive Officer of ADNOC Drilling, commented: “We are very pleased to have been awarded this important contract, which will contribute to the effective development of the Upper Zakum field and enable ADNOC to realize accelerated production capacity targets to responsibly supply energy to a world which sees continuously rising demand.
This contract award further demonstrates the delivery of our strategic objective to expand our Oilfield Services (OFS) business as we continue to work towards our goal of further doubling OFS revenues by 2025. This contract, alone, will add some 20% to our annual revenue compared with 2022. Our comprehensive market-leading drilling and completion services offering improves operational performance and efficiency, delivering considerable cost savings and reductions in well delivery times for our customers.”
As a market leader in the region, ADNOC Drilling is committed to expanding its comprehensive suite of services in the OFS division to enable the efficient and competitive delivery of start-to-finish drilling and well completion, for the benefit of its customers. In 2022, ADNOC Drilling had 40 operational IDS rigs, with OFS revenue reaching $405 million, an increase of 23% on the previous year. The Company has guided the market to expect the segment to generate $500 - $550 million in revenue in 2023.
Previous IDS contract awards in 2022 include a $1.3 billion award for the Ghasha Mega-project, $1.6 billion award for integrated drilling fluid services and a $777 million award for wireline and perforation services.