Abu Dhabi National Oil Company (Adnoc) has awarded a trio of framework agreements to leading domestic and international drilling services giants, as the emirate steps up its upstream spending, aimed at achieving 5 million barrels per day of oil production capacity in the coming years.

The state-controlled giant said the deals are together “valued at $4 billion” and involve integrated drilling fluids services to support the “ongoing expansion of its lower cost and lower-carbon intensive production capacity”.

The awards were given to Adnoc Drilling, Schlumberger and Halliburton.

“They cover Adnoc’s onshore and offshore fields and will run for five years with an option for a further two years,” Adnoc noted.

The Abu Dhabi giant has awarded multiple framework deals this year, as it is said to be bringing forward its target of producing 5 million bpd from 2030 to 2025.

Framework awards

In the past 12 months, Adnoc has awarded over $16 billion in agreements for drilling-related equipment and services.

Many more onshore and offshore contracts for engineering, procurement and construction are likely to be singed by the emirate in the coming years for a business pipeline which includes the multi-billion development of the Hail & Ghasha sour gas fields.

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Adnoc Upstream executive director Yaser Saeed Almazrouei said the framework agreements continue the company’s significant investment in drilling-related services to enable the expansion of its production capacity.

The operator noted that the “framework agreements were awarded following a competitive tender process”.

“They will enable hundreds of millions of dollars in cost savings through Adnoc’s optimised procurement approach that focuses on longer-term contracts with an optimal number of suppliers that can reliably deliver at competitive rates,” it added.

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