ADNOC Drilling's strong results have been fuelled by the expansion of both its onshore and offshore fleets. (Image source: Adobe Stock)

ADNOC Drilling has reported record financial results for 2024, with net profits rising by 26% year-on-year to US$1.3bn, and revenue growing by 32% to US$4.03bn, reflecting buoyant oil and gas activity both onshore and offshore

This strong growth has been fuelled by the expansion of onshore and offshore fleets, as well as the continued growth of the oilfield services (OFS) segment, reflected in strong revenue growth of 41% year-on-year for the fourth quarter 2024. At the end of Q4 2024, the fleet consisted of 142 owned rigs, 95 onshore and 47 offshore, making it the largest fleet in the Middle East, and this is set to rise to 151 or more by 2028. In 2024 the company operationalised 23 rigs, including two jack-up rigs set to join in H1 2025.

Onshore revenue increased 33% year-on-year to US$554mn, mainly due to new rigs starting operations and growth of the unconventional business. Offshore jack-up revenue increased 17% year-on-year to US$264mn, with the expansion of the offshore operations. Offshore island revenue increased 8% year-on-year to US$56mn, and oilfield services (OFS) revenue increased 111% year-on-year to US$313mn, mainly driven by increased integrated drilling services (IDS), positive phasing related to directional drilling and pressure pumping, and revenue from the unconventional business.

New joint ventures

ADNOC Drilling’s new joint ventures launched in 2024 are also fuelling the company’s growth. SLB, ADNOC Drilling Company and Patterson-UTI joined forces to create Turnwell Industries LLC OPC, the unconventional arm of ADNOC Drilling, which will leverage innovations in AI, smart drilling design, completions engineering and production solutions to accelerate the UAE’s unconventional oil and gas programme. Abu Dhabi holds an estimated 220bn barrels of unconventional oil and 460 TCF of unconventional gas in place. While Enersol Energy Solutions, its joint venture with Alpha Dhabi Holding, was set up as a tech-centric investment platform, to invest in innovative oilfield services companies and thereby accelerate the recovery of UAE conventional and unconventional energy resources.

Abdulrahman Abdulla Al Seiari, ADNOC Drilling CEO, said, “Our outstanding 2024 financial results reinforce ADNOC Drilling’s position as the world’s fastest growing energy services company with net profit more than doubling since listing on ADX.

“As we remain focused on our future growth, we continue to expand our fleet and capabilities at ADNOC Drilling and through our joint ventures, Enersol and Turnwell, to continue powering the future of energy with AI-enabled technology investments, sustainability and innovation.”

In an interview with Bloomberg, Youssef Salem, ADNOC Drilling CFO, highlighted the growth of the unconventional segment, where ADNOC Drilling landed a US$1.7mn contract last year, growing the business by around 25%. “That’s a business that requires a lot of services intensity,” he commented. He also highlighted the positive impact technology has had on the company’s margins and its focus on AI, with smart cameras being rolled out across all its rigs which can predict potential accidents. He said the company is expecting to do at least US$700mn in technology deals this year, primarily related to AI and other energy technology.

Salem also highlighted the positive outlook for the company globally as it seeks to expand its operations in the Middle East as well as Africa and Asia. Commenting on the outlook for global energy demand he said, “We are seeing in the market now a significant increase in activity and creativity, with countries wanting to drill more and get more resources out of the ground. That’s great for us at it increases activity, so the trends whether it’s in the US or different parts of the world, with more drilling and more activity, that effectively increases our volumes and profitability.”

ADNOC Drilling’s positive results follow positive results from other ADNOC divisions including ADNOC Gas and ADNOC L&S.

See also https://oilreviewmiddleeast.com/exploration-production/adnoc-drilling-sees-steady-revenue-increase-in-2024

The training session brought together engineers specialised in corrosion mitigation and asset protection. (Image source: GPT Industries)

In December, GPT Industries successfully conducted its industry-leading GFIT (GPT Flange Isolation Training) programme in collaboration with a major oil and gas operator in the Middle East

This hands-on training session brought together 20 engineers specialising in corrosion mitigation and asset protection, equipping them with the skills and knowledge to enhance system integrity and reliability.

Why GFIT matters

Flange isolation is a critical component in ensuring long-term corrosion prevention in pipeline systems. Studies show that over 80% of gasket failures stem from incorrect installation, which can lead to costly system failures, safety hazards, and environmental risks. GFIT provides engineers and field technicians with in-depth training on the correct installation and inspection of flange isolation kits (FIKs), ensuring optimal performance and compliance with industry best practices.

Comprehensive training for real-world challenges

Out in the field, installers often face a variety of challenges that can impact the correct installation of isolation gaskets. With 193 components in a standard 24”/600# isolation kit, even experienced professionals can make errors that lead to failures. The GFIT programme addresses these challenges by covering:
• Proper installation techniques
• Safe procedures for testing flange isolation
• Correct tool selection and inspection methods
• Failure analysis and prevention strategies

Who should attend?

The GFIT training program is ideal for Field Technicians, Integrity Engineers, Corrosion Engineers, and general engineering professionals seeking to enhance their expertise in flange isolation techniques.

Invest in knowledge, prevent failures

With over 40 years of experience in critical service flange systems, GPT Industries has developed the GFIT programme as a culmination of industry best practices. Whether field-based or office-based, our tailored training ensures that engineers and technicians gain practical insights into effective flange isolation, bridging the gap between field operations and engineering teams.

To learn more about our upcoming training sessions, including customisation options, visit www.gptindustries.com or contact us directly.

Three companies will start production at the Park this year. (Image source: OQ)

OQ, the Oman-based energy investment group, has announced that three companies will start production in early 2025 at Ladayn Polymer Park, representing a combined investment of US$42mn

They include Oman’s Madayn Plastic Company (MAPCO), which will produce Form Fill Seal (FFS) bags; M.A.K Sohar, a German company renowned for their expertise in developing high-performance chemical solutions which will focus on TPE and engineering compounds designed to meet the evolving needs of polymer manufacturers; and Multibond Metal LLC, a Chinese-Indian joint venture which will focus on advanced polymer solutions for heat resistance and surface protection.

Ladayn Polymer Park, established two years ago with the aim of bolstering Oman’s position as a regional leader in plastics manufacturing, has now secured 16 agreements valued at almost US$155mn, across various applications in packaging, construction and advanced polymer solutions.

“This milestone demonstrates the transformative potential of Ladayn Polymer Park in fostering local manufacturing, creating jobs, and driving Oman’s economic growth. By enabling the production of finished plastic products locally, we are not only reducing our reliance on imports but also positioning Oman as a regional hub for innovation and sustainability in the polymer industry,” said Sadiq Hassan Al-Lawati, managing director of OQ Marketing.

“Our partnerships with investors like MAPCO, M.A.K Sohar, and Multibond Metal LLC highlight the strategic importance of Ladayn Polymer Park in the region. Through initiatives like these, we are creating an integrated ecosystem that supports value-added manufacturing, addresses global challenges, and enhances Oman’s industrial capabilities,” said Mundhar Al Rawahi, Ladayn Park program leader.

Supply contracts

The companies have established supply contracts with OQ, ensuring consistent access to high-quality raw materials at competitive prices which, along with the strategic geographical advantage to markets through Sohar Port and the economic incentives of Sohar Freezone, have made Ladayn Polymer Park an attractive location for companies looking to expand in the region.

“We are strategically positioned with access to emerging markets in West Asia and Africa. In addition, the park’s bespoke incentives, advanced infrastructure, and dependable raw material supply from OQ create a thriving environment for businesses to succeed,” added Al-Lawati. “We look forward to welcoming more investors and partners to the park in 2025.”

Located in Sohar Industrial City, Ladayn Polymer Park spans an area of more than one million square metres, and is a joint initiative between OQ, the Public Establishment for Industrial Estates (Madayn), the National Programme for Investment and Export Development (Nazdaher) and the Ministry of Commerce, Industry, and Investment Promotion. It is designed to support economic diversification policies and attract investment, in line with the objectives of Oman Vision 2040, develop local industries and promote Omani goods and services, thereby boosting job creation and skills development, especially in the plastics industry, and creating new opportunities for small and medium enterprises (SMEs).

Osama Oulabi, general manager, KSA and Middle East, Speedcast. (Image source: Speedcast)

Osama Oulabi, general manager, KSA and Middle East, Speedcast, discusses how the company is addressing Saudi Arabia's evolving communications needs

The oil and gas sector in Saudi Arabia invests billions every year in the infrastructure and complex processes needed to pull hydrocarbons from the Earth. But now more than ever, the success of these operations depends on the communications and information technology that connects, monitors and manages it.

Saudi Arabia has become one of the world’s fastest-growing economies – yet the growth in demand for communications and IT services is outpacing it. As the Kingdom keeps investing in supplying the world’s energy needs, Speedcast is growing its operations and bringing expertise gained from every corner of the oil-producing world to benefit organisations operating in KSA.

Connecting exploration everywhere

Oil exploration vessels and platforms are some of the most sophisticated operational assets to ever exist. While operating, they must mitigate the changing conditions at sea and overcome the many challenges of drilling into high-pressure areas at immense depths, ensuring that their communications and technologies seamlessly maintain their roles without interruption or failure. Remarkable technology helps them achieve this at the site, but they also depend on connectivity to the home office, where teams of engineers, geologists and technicians monitor their progress and provide decision support in real-time. These operations require the ability to transmit high volumes of data with extreme reliability.

Energy companies with global footprints such as Seadrill and Halliburton depend on Speedcast to provide the reliability expected to successfully operate in all major energy regions. The core of these networks is a fully managed VSAT service provided over global satellite, teleport, and fiber capacity. Wherever adequate LTE or line-of-sight microwave connectivity to the shore is available, the onboard systems can default to these lower-cost paths if operational requirements allow. Speedcast also installs and manages onboard equipment to provide wide-area and local-area networking as well as PBX service.

Embracing new technologies

With the introduction of Low Earth Orbit (LEO) constellations, there are now more satellite service options than ever, along with new, exciting players slated to join the fold soon. Embracing the hybrid network model to ensure that the best options are being used at the most opportune times is now of utmost importance, along with the ability to seamlessly connect to different paths without operational disruption.

Speedcast helps energy customers both onshore and offshore integrate LEO services into existing managed solutions across thousands of remote sites every day. It leverages the latest network management solutions to seamlessly blends multiple connectivity paths –a mix of LEO, GEO VSAT, L-band and cellular, into a single, wide-area network that continuously monitors each connectivity path and dynamically orchestrates traffic in the best paths. The platform can also prioritise critical traffic for paths offering CIR and SLAs, while routing lower-priority traffic to connections that don’t and managing seamless hand-offs between services and satellites based on their performance and cost. It also makes the choices based on rules established by the customer or site – and delivers very high uptime, QoS, and bandwidth optimisation in the process. This allows for continuous integration of the latest and greatest technologies with little to no disruption in the operations and minimised risk of failure.

Critical comms during all phases

During the construction phase of oil and gas infrastructure projects, the integration and installation of seamless IT and telecom systems are paramount to efficiency.  Speedcast systems integration teams specialise in connecting the critical communications infrastructure with technologies such as intrusion detection, access control and CCTV systems for security, and Wi-Fi and IPTV networks for both work and recreation. For construction offices, we build voice, data and vehicle tracking as well as push-to-talk radio communications and handheld terminals.  Local networks connect to the rest of the world via multipath networks that seamlessly combine VSAT, cellular, microwave and fiber on the Speedcast network.  In addition to installation, Speedcast provides 24/7 maintenance and IT support services for these mission-critical facilities.

Once wells are producing, whether onshore or offshore, they continue to require technology to monitor hundreds of performance indicators and environmental risks. Reliable connectivity remains just as important, and advanced connectivity offers opportunities to optimise operations. One customer used a network created by Speedcast to link all its client’s offshore rigs to a single global service center, and in return the company estimates that centralising support for the rigs reduced overall costs by 30%.

Connectivity is equally important for attracting and retaining qualified staff at the wellhead. Speedcast develops Wi-Fi networks and provides fully managed services for access to the internet, entertainment, and news. They allow crew members to subscribe and pay for the services they want. We manage bandwidth by downloading licensed popular content to a local server when activity on the network is low, so that users can access entertainment and news without accessing a remote server. The same platform can deliver video-based training content and monitor its consumption for compliance purposes.

To complement the network solution and support needed for the expected growth in the Kingdom, Speedcast is well-versed in managing unique licensing and regulatory requirements, having infrastructure in over 60 countries, and supporting customers in over 150 countries. With its licenses and Newtec hub now in-country, Speedcast Saudi is positioned for rapid growth and development with superior support capabilities and our focus on leveraging innovative solutions to deliver 100% uptime from site to shore.

See also the exclusive interview with Speedcast's Richard Begnaud, vice president of operations for Saudi Arabia, here