Abu Dhabi National Oil Company (Adnoc) has awarded framework agreements worth $658 million to five domestic and international service companies, aimed at boosting the emirate’s oil production capacity.
The state-owned giant said on Thursday that the framework agreements have been awarded for cementing services — a key element in the drilling and completion of oil and gas wells.
The deals were awarded to — Haliburton Worldwide Abu Dhabi (Halliburton), Baker Middle East (Baker), Emirates Western Oil Well Drilling & Maintenance Company (Emirates Western), NESR Energy Services (NESR) and Emjel Oil Field Services (Emjel), the company said.
The contracts were awarded “following a competitive tender process,” Adnoc added.
Five year contracts
The deals cover multiple onshore and offshore fields in Abu Dhabi and will run for five years with an option for a further two years, the company noted.
The state-owned giant said over “65% of the award value could flow back into the United Arab Emirates (UAE) economy under Adnoc’s in-country value (ICV) programme over the duration of the agreements.”
Yaser Saeed Almazrouei, Adnoc’s upstream executive director said “the awards for cementing services will support the ongoing expansion of Adnoc’s drilling activities,” as the company grows its production capacity.
The award for cementing services takes the total value of Adnoc’s drilling-related framework agreements and procurement awards since November 2021 to over $8.5 billion, it said.
“These awards will support Adnoc’s requirement to drill thousands of new wells as it increases its crude oil production capacity to 5 million barrels per day (bpd) by 2030 and drives gas self-sufficiency for the UAE,” the company noted.
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 end of this decade, 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.