ADNOC awards contracts worth US$750mn for drilling-related services

PR ADNOC Invests 14072021The Abu Dhabi National Oil Company (ADNOC) has awarded three contracts worth a total of US$763.7mn (AED2.8bn) for integrated rigless services across six of its artificial islands in the Upper Zakum and Satah Al Razboot (SARB) fields to support its production capacity expansion to 5mn bpd by 2030

ADNOC Offshore awarded the contracts to Schlumberger, ADNOC Drilling, and Halliburton after a competitive tender process. Schlumberger’s share of the award is valued at US$381.18mn (AED1.4bn); ADNOC Drilling’s share is valued at US$228.71mn (AED839.58mn), and Halliburton’s share is valued at US$153.87mn (AED564.85mn).  

More than 80% of the total award value will flow back into the UAE economy under ADNOC’s In-Country Value (ICV) program over the five-year duration of the contracts, reinforcing ADNOC’s commitment to ensuring more economic value remains in the country from the contracts it awards.

Yaser Saeed Almazrouei, ADNOC Upstream executive director, said, “These important awards for integrated rigless services will drive efficiencies of drilling and related services, and optimise costs in our Offshore operations as we ramp up our drilling activities to increase our production capacity and enable gas self-sufficiency for the UAE. The contractors bring best-in-class expertise and technologies with a proven track record in the industry, and ADNOC Drilling’s scope reflects its expanded service profile following its successful transformation into a fully integrated drilling services (IDS) company, enabling it to offer its clients start-to-finish well drilling and construction services. Importantly, the high In-Country Value generated from the awards will stimulate new business opportunities for the private sector and support the UAE’s post-Covid economic growth.” 

The scope of the contracts includes coiled tubing services with thru-tubing downhole tools, stimulation services, including equipment and chemicals/fluid systems, surface well testing services, wireline, and production logging services and tools, saturation monitoring, and well integrity. 

The six artificial islands covered by the awards are Asseifiya, Ettouk, Al Ghallan, and Umm Al Anbar in the Upper Zakum field and Al Qatia and Bu Sikeen in the SARB field. Artificial islands provide significant cost and environmental benefits, particularly in shallow water, by enabling the use of lower-cost land-drilling rigs instead of higher-cost offshore jack-up drilling rigs. 

 

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