RIYADH: Abu Dhabi National Oil Co., known as ADNOC, has awarded three contracts worth $4 billion as it eyes reaching a production capacity of 5 million barrels a day by 2030, along with reducing carbon emissions.
According to a press statement, the contracts were won by ADNOC Drilling, US-based oilfield services providers Schlumberger NV and Halliburton Co.
The agreements will cover ADNOC’s onshore and offshore operations, and will run for five years, with an option for a further two years.
“These record framework agreements for integrated drilling fluids services continue ADNOC’s significant investment in drilling-related services to enable the expansion of our production capacity and responsibly unlock the UAE’s leading low-cost, lower-carbon intensity hydrocarbons,” said Yaser Saeed Almazrouei, ADNOC's upstream executive director.
ADNOC Drilling’s scope of the framework agreements is valued at up to $1.6 billion.
In a separate statement, ADNOC Drilling said that the award will boost its oilfield services revenue by an additional $750 million.
“This reflects the company’s transformation and expansion of its service profile into a fully Integrated Drilling Services company, following the development of its Oilfield Services division in partnership with Baker Hughes,” said ADNOC in the statement.
“Integrated drilling fluids services are crucial in support of delivering the wells needed to meet ADNOC’s strategy to increase its production capacity and achieve gas self-sufficiency for the UAE,” said Abdulrahman Abdullah Al-Seiari, ADNOC Drilling's CEO.
He added: “Contracts of this scale help us to ensure that we deliver strong and sustained growth for the UAE and ADNOC Drilling’s shareholders.”
With this contract award, the total value of awards confirmed by ADNOC Drilling reached $8.85 billion in 2022, the press release further noted.
On Oct. 03, ADNOC Drilling completed one year of its listing in the Abu Dhabi Securities Exchange. During the time of its initial public offering, the firm’s shares were 31 times oversubscribed.
As of Sept. 30, 2022, ADNOC Drilling had delivered a total shareholder return of 53.7 percent.