Abu Dhabi National Oil Company (ADNOC) and National Oilwell Varco have signed an agreement to construct a new oil rig worth US$32mn in the UAE
The rig will reportedly be built by US company National Oilwell Varco to serve as ADNOC's main onshore operator, which is keen in boost output to 1.8mn bpd from 1.5mn bpd in 2017.
The agreement was signed between National Drilling Company (NDC) - a subsidiary of ADNOC, and National Oilwell Varco, stated reports. ADNOC officials have added that UAE is hoping to increase overall pumping capacity to 3.5mn bpd from 3mn by 2020. To attain this target, Abu Dhabi needs to have a rig count of 88, more than double last year's figure of 40.
Abdalla Saeed Al Suwaidi, CEO of NDC, said, ”NDC is committed to sustainable progress and continuous growth. An earlier rig ordered from National Oilwell Varco has already drilled its first well in the UAE.”
More than half of the 88 rigs Abu Dhabi hopes to have operational by 2018, are meant for onshore fields. This is where challenging techniques are needed to maintain output of oil, stated experts. They added that the Middle East needs to double its rig fleet to meet its expansion targets.
