Abu Dhabi National Oil Company (Adnoc) has awarded a $1.53 billion contract to Adnoc Drilling, aimed at expanding the production potential of its offshore fields.
The operator said in a statement on Monday that the two-year contract “covers the provision of 12 jack-up rigs, two island rigs and the associated integrated drilling services”.
“This award will leverage Adnoc Drilling’s start-to-finish offering as well as its position as the largest drilling company in the region by rig fleet size to drive value and efficiencies while minimising environmental impact,” it added.
Adnoc noted that the new contract award supports the expansion of its “crude oil production capacity to 5 million barrels per day by 2030 and gas self-sufficiency for the United Arab Emirates”.
There are growing suggestions among multiple sources that Adnoc will fast-track these ramp-up plans to reach the 5 million bpd target by 2025, led by market fundamentals and an assessment of the limited spare capacity of leading producers in the region.
A formal announcement on advancing its production capacity target is yet to be made by the company, which intends to maintain its 5 million bpd target from 2025 to 2030.
The Abu Dhabi giant has also unveiled a $127 billion capital expenditure plan for 2022 to 2026, as it embarks on multiple offshore oil and gas expansion projects.
Adnoc Drilling chief executive Abdulrahman Abdulla Al Seiari said the recent contract win would enable its ambitious rig fleet expansion programme, for which the company has “made a significant capital expenditure commitment”.
Adnoc upstream executive director Yaser Saeed Almazrouei said that through the recent award the company “will continue to responsibly harness the energy in Abu Dhabi’s waters, as it increases production capacity to meet the world’s growing demand for energy with lower carbon intensity oil and gas”.
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