ADNOC Dishes Out $760MM+ in Awards

ADNOC Dishes Out $760MM+ in Awards
ADNOC has announced an investment of $763.7 million in integrated rigless services across six of its artificial islands in the Upper Zakum and Satah Al Razboot fields.

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



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