ADNOC Drilling, SLB and Patterson-UTI Close Turnwell Joint Venture

Turnwell successfully delivers first wells to ADNOC in under 20 days, setting new benchmark 

Turnwell unlocking Abu Dhabi’s world-class unconventional energy resources to meet growing global demand for affordable, accessible energy

Abu Dhabi, UAE – December 17, 2024: ADNOC Drilling Company PJSC (“ADNOC Drilling” or the “Company”) (ADX symbol: ADNOCDRILL / ISIN: AEA007301012) has today announced the closing under the agreement to create Turnwell Industries LLC OPC (Turnwell), a joint venture (JV) between ADNOC Drilling, SLB and Patterson-UTI TW Holdings LLC (“Patterson-UTI”). 

Commenting on the completion of the JV agreement, Abdulrahman Abdulla Al Seiari, Chief Executive Officer, ADNOC Drilling, said: “Closing the Turnwell JV with SLB and Patterson-UTI advances our plans to unlock the UAE’s world-class unconventional energy resources, reinforcing the UAE’s position as a global leader in the responsible supply of energy.

“This joint venture is a groundbreaking achievement and is already paying dividends through the significant reduction in well delivery time as seen through the first wells being delivered in record time.”

The JV cements a powerful partnership that will lead the UAE’s new unconventional energy journey. ADNOC Drilling holds a 55% majority equity stake, SLB, the world's largest oilfield services provider, holds a 30% equity stake and Patterson-UTI, a leading provider of drilling and completions services in the United States, holds the remaining 15% equity stake. 

Turnwell announced the acceleration of its initial 144 unconventional wells earlier this year, following the successful operational startup, enabled by the resources, expertise, and strategic guidance of ADNOC Drilling, SLB and Patterson-UTI. Turnwell is also exploring the significant potential for future opportunities in unconventional energy resources in the UAE. 

Turnwell successfully delivered the fastest well time so far, in their 144 well drilling campaign of a record 19.9 days, with an expectation for further significant efficiency gains. On the initial wells they achieved a 13% improvement in well delivery time compared to the previous record and a 53% reduction in well delivery over the 4 wells in the pad. 

Turnwell used advanced measurement while drilling technology, advanced drill bit designs, and new generation rotary steerable systems, to reduce costs and time. The key to success for Turnwell is to deliver low-cost wells and this record sets them firmly on track to achieve this.

Today, Abu Dhabi holds an estimated 220 billion barrels of unconventional oil and 460 TCF of unconventional gas in place. The recovery of these resources will require many thousands of wells to be delivered, over and above the initial 144 wells. 

Turnwell will leverage cutting-edge innovations in AI smart drilling design, completions engineering, and production solutions to responsibly deliver and secure the UAE’s unconventional energy needs and resources. Turnwell also benefits from a direct relationship with ADNOC Drilling’s JV with Alpha Dhabi, Enersol, which is investing in, and acquiring the IP of, innovative energy services technology companies that bring greater operational efficiency.