Abu Dhabi National Oil Company (Adnoc) has awarded framework agreements worth $1.83 billion to multiple domestic and international service players that would together enable a drilling drive aimed at boosting the emirate’s oil production capacity to 5 million barrels per day by 2030.
The state-owned company said on Wednesday that the framework agreements involve “directional drilling and logging while drilling (LWD)”, services.
Adnoc said the awards were placed to Al Ghaith Oilfield Supplies & Services Company, Al Mansoori Directional Drilling Services, Schlumberger Middle East, Haliburton Worldwide Abu Dhabi and Weatherford Bin Hamoodah Company, following a competitive tender process.
Directional drilling and LWD services involve controlling the direction and deviation of a wellbore while drilling to access oil and gas resources and measuring formation properties to enhance production.
The company noted that the framework agreements “cover Adnoc’s onshore and offshore fields and will run for five years with an option for a further two years”.
The framework agreement awards will support Adnoc’s requirement “to drill thousands of new wells” as part of its campaign to expand its production capacity to 5 million bpd 2030, as well as helping it enable gas self-sufficiency for the United Arab Emirates “and remain a leading low-cost, low-carbon oil producer”, the company added.
Adnoc’s upstream executive director Yaser Saeed Almazrouei said the awards build on the company’s ongoing investments in drilling services and will deliver substantial in-country value for the nation to support economic growth and diversification.
The company has awarded drilling agreements worth over $11 billion since November last year to top-tier contractors for wellheads and related components, downhole completion equipment and related services, cementing services and other associated services.