ADNOC Drilling Signs Turnwell Agreements and Accelerates Initial $1.7 Billion Unconventionals Campaign

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

Delivery of initial 144 wells to be accelerated, driving early revenue realization with potential for significant number of additional wells in second phase

Turnwell to deploy Enersol’s technology pipeline to drive cost efficiencies and safety

Abu Dhabi, UAE – September 30, 2024: ADNOC Drilling Company PJSC (“ADNOC Drilling” or the “Company”) (ADX symbol: ADNOCDRILL / ISIN: AEA007301012) announced today the creation of the Turnwell joint venture with SLB and Patterson-UTI and the acceleration of its 144 unconventional oil and gas well program, following the successful and efficient delivery of the first wells in the campaign. 

The Company through its wholly owned subsidiary ADH RSC LTD has signed definitive agreements for the creation of the Turnwell joint venture (JV) with SLB and Patterson-UTI. Focused on the UAE’s world-class unconventional energy resources, post completion of the JV, ADNOC Drilling through its wholly owned subsidiary will hold a 55% majority equity stake, SLB a 30% equity stake and Patterson-UTI the remaining 15% equity stake. 

Turnwell was established to be the unconventionals drilling arm of ADNOC Drilling and execute a $1.7 billion contract, awarded to ADNOC Drilling, to provide drilling and associated services to deliver 144 unconventional oil and gas wells. Following Turnwell’s efficient and successful start-up and operational delivery, ADNOC has accelerated the campaign’s completion timeline. The economic impact of the acceleration will benefit ADNOC Drilling’s 2025 earnings as well as its long-term growth through the potential acceleration of phase two with thousands of wells.

Commenting on the acceleration of the well program, Abdulrahman Abdulla Al Seiari, Chief Executive Officer, ADNOC Drilling, said: “Today marks a defining moment for Turnwell and our key partners SLB, and Patterson UTI. The acceleration of the well program, is a testament to the innovation, collaboration, and pursuit of excellence that will define our joint venture. 

“Turnwell will not only unlock the immense potential of the UAE's world-class unconventional energy resources but will also set new benchmarks for the global energy industry. We are proud to lead the way in responsibly shaping the future of energy, both in the UAE and beyond.”

To achieve this accelerated timeline, Turnwell has adopted batch drilling, a method that improves efficiency and reduces costs. Additionally, Gordon Technologies, a market-leading provider of Measurement While Drilling (MWD) technology and an Enersol company, will support the delivery of these wells. MWD technology reduces drilling time, improves well-bore quality, and increases overall drilling efficiency. 

The involvement of Enersol companies in this campaign is pivotal. Enersol, a technology-focused investment JV between ADNOC Drilling and Alpha Dhabi Holdings, acquired a 67.2% stake in Gordon Technologies. The use of technology from Enersol companies, by Turnwell, demonstrates the unique opportunities Enersol companies have to penetrate and grow in the Middle East market, while continuing to strengthen their presence in the traditional markets.