ADNOC Drilling has been awarded a five-year contract for the provision of Integrated Drilling Services (IDS) worth $412 million from ADNOC Offshore, commencing in the second quarter of 2023.
The IDS is for the development of the Upper Zakum field, the largest producing field in ADNOC’s offshore portfolio. ADNOC Drilling’s services will add to the project’s efficiency of production and deliver significant cost savings.
The contract will play a vital part in ADNOC Drilling’s aim to double its Oilfield Services (OFS) revenue within the next two years.
Abdulrahman Abdullah Al Seiari, Chief Executive Officer of ADNOC Drilling, commented: “We are very pleased to have been awarded this important contract, which will contribute to the effective development of the Upper Zakum field and enable ADNOC to realise accelerated production capacity targets to responsibly supply energy to a world which sees continuously rising demand.
“This contract further demonstrates the delivery of our strategic objective to expand our Oilfield Services business as we continue to work towards our goal of further doubling OFS revenues by 2025. This contract, alone, will add nearly 20 percent to our annual revenue compared with 2022.”
Previous IDS contract awards in 2022 include a $1.3 billion project for the Ghasha Megaproject, $1.6 billion award for integrated drilling fluid services and a $777 million award for wireline and perforation services.
The Abu Dhabi Securities Exchange-listed ADNOC Drilling, a market leader in the region, had 40 operational IDS rigs in 2022, with OFS revenue reaching $405 million, an increase of 23 percent on the previous year. The Company has guided the market to expect the segment to generate $500 to $550 million in revenue in 2023.
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