ADNOC dishes out $1.94bn worth of drilling contracts

Abu Dhabi National Oil Company (ADNOC) has awarded framework agreements worth $1.94bn to four top-tier companies aiming to boost drilling activities. The contracts were awarded to its subsidiary Adnoc Drilling, Schlumberger, Haliburton and Weatherford.

The state-owned company said the framework agreements are for wireline logging and perforation services and are “the largest of such awards in the oil and gas industry.” Wireline logging involves continuously measuring the properties of rock formations to guide drilling operations, while perforation creates tunnels in the wellbore to allow fluid to flow in from the reservoir.

The framework agreement awards cover ADNOC’s onshore and offshore fields and will run for five years, with an option for a further two years. Adnoc Drilling’s share of the awards is the largest, and it covers services including cased hole and open hole as well as perforation.

The latest deal builds on ADNOC’s recent record investments in drilling-related equipment and services and is said to support its strategy to boost crude oil production capacity to 5 mmbpd by 2030 and drive gas self-sufficiency for the United Arab Emirates (UAE).

“The framework agreement awards will support ADNOC’s requirement to drill thousands of new wells to expand its production capacity and remain a leading low-cost, low-carbon oil producer. The awards will also enable hundreds of millions of dollars in cost savings,” the company said.