Abu Dhabi National Oil Company (Adnoc) has awarded framework agreements worth $1.94 billion to multiple domestic and international service companies that would together enable drilling growth, aimed at boosting the emirate’s oil production capacity.
The state-owned company said on Thursday that the framework agreements involve “wireline logging and perforation services” and are the “largest of such awards in the oil and gas industry”.
The company noted that the awards were placed to its subsidiary Adnoc Drilling, Schlumberger Middle East, Haliburton Worldwide Limited Abu Dhabi and Weatherford Bin Hamoodah Company, following a competitive tender process.
“The awards build on Adnoc’s recent record investments in drilling-related equipment and services and support its strategy to boost crude oil production capacity to 5 million barrels per day by 2030 and drive gas self-sufficiency for the United Arab Emirates,” it said.
Five year agreements
The company said the agreements 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 covers services including cased hole and open hole as well as perforation, it added.
Adnoc group chief executive Sultan Ahmed Al Jaber said the framework agreements “are a continuation of Adnoc’s unprecedented investment in services to enable the expansion of drilling activity required to responsibly unlock the UAE’s leading low-cost and low-carbon intensity oil as well as the nation’s gas resources”.
The company noted that the recently awarded framework agreements “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”.
Procurement contracts in place
In November, Adnoc awarded procurement contracts worth more than $6 billion to boost drilling capability in its drive to ramp up oil production to 5 million bpd by 2030, from the existing capacity of 4 million bpd.
The investments announced last year included procurement awards for wellheads and related components, downhole completion equipment and other associated services.
