ADNOC Dishes Out $760MM+ in Awards
The Abu Dhabi National Oil Company (ADNOC) has announced an investment of $763.7 million (AED 2.8 billion) in integrated rigless services across six of its artificial islands in the Upper Zakum and Satah Al Razboot (SARB) fields.
The investment - which was made in the form of three contracts awarded to Schlumberger, ADNOC Drilling, and Halliburton after a competitive tender - will support the company’s production capacity expansion to five million barrels per day (MMbpd) by 2030, ADNOC outlined. Schlumberger’s share of the award is valued at $381.18 million (AED 1.4 billion), ADNOC Drilling’s share is valued at $228.71 million (AED 839.58 million), and Halliburton’s share is valued at $153.87 million (AED 564.85 million), ADNOC revealed.
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 company highlighted. Over 80 percent of the total award value will flow back into the United Arab Emirates’ economy under ADNOC’s In-Country Value (ICV) program over the five year duration of the deals, according to ADNOC.
“These important awards for integrated rigless services will drive efficiencies of drilling and related services and optimize 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,” Yaser Saeed Almazrouei, ADNOC’s upstream executive director, said in a company statement.
“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 company, enabling it to offer its clients start-to-finish well drilling and construction services,” he added.
“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 ADNOC director went on to say.
Ahmad Saqer Al-Suwaidi, the chief executive officer of ADNOC Offshore, said, “these contracts are an important contributor to ADNOC Offshore’s plans to build our production capacity to over two million barrels a day in the coming years to support the ADNOC Group’s smart growth strategy”.
“The award follows a highly competitive bid process, which included a rigorous assessment of how much of the contract value would support the growth and diversification of the UAE’s economy through ADNOC’s In-Country Value Program,” he added.
Back in May, ADNOC announced the award of a $744 million (AED 2.73 billion) contract for the full field development of the Belbazem Offshore Block as part of its drive to unlock and maximize value from all of Abu Dhabi’s fields as it expands its oil production capacity. During the same month it announced an investment of up to $318 million (AED 1.16 billion) to connect newly drilled smart wells to the main production facilities at Bu Hasa, which it said will sustain production capacity of 650,000 barrels per day.
To contact the author, email andreas.exarheas@rigzone.com
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- ExxonMobil Racks Up Discoveries in Guyana Block Eyed by Chevron
- Oil Market Sentiment Has Improved Significantly
- EU, US Eye Collaboration on Nuclear Materials
- USA Driving Activity to Increase to All-Time Highs
- TC Energy to Sell Prince Rupert Gas Pipeline Project to First Nation
- EU Electricity Export to Ukraine Up 94 Percent in Two Years
- China Coal Output Falls for First Time since Government Ordered More
- BP Pulse Buys One of Europe's Largest Truck Stops
- UK CCUS Plans Outdated: Think Tank
- North America Enters Rig Loss Streak
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Major Oilfield Discovery
- EIA Drops 2024 Henry Hub Gas Price Forecast
- EIA and Standard Chartered Offer Up Latest Oil Price Predictions
- Red Sea Region Sees Another Watershed Incident
- Chevron Oil Project in Kazakhstan to Cost $48.5B
- OPEC Voices Encouragement after IEA Affirms Support for Oil Security
- Biden Govt Bares Strategy for Freight Charging, Hydrogen Fueling Infra
- Ukraine Hits Third Russian Refinery In Escalating Drone Strikes
- Rystad Looks at the Buzz Around White Hydrogen
- VIDEO: Missile Attack Kills Crew Transiting Gulf of Aden
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Major Oilfield Discovery
- What Is the Biggest Risk to Offshore Oil and Gas Personnel in 2024?
- Is Peak Oil Demand Close?
- Vessel Sinks in Red Sea After Missile Strike
- JP Morgan, Standard Chartered Reveal Latest Oil Price Forecasts
- Exxon Rights in Stabroek Do Not Apply to Hess Merger with Chevron: Hess
- Rystad Forecasts Net Production of Top Permian Producers in 2024
- Analysts Reveal Latest Oil Price Outlook Following OPEC+ Cut Extension