Abu Dhabi National Oil Company (ADNOC) has announced framework agreement awards worth $1.94 billion (AED 7.1 billion) to enable drilling growth.
The deals, which are for wireline logging and perforation services, are said to be the largest of such awards in the oil and gas industry. They were awarded to ADNOC Drilling Company P.J.S.C, Schlumberger Middle East S.A, Halliburton Worldwide Limited Abu Dhabi, and Weatherford Bin Hamoodah Company LLC following a competitive tender process, ADNOC revealed.
ADNOC noted that the awards build on its recent record investments in drilling-related equipment and services and support its strategy to boost crude oil production capacity to five million barrels per day by 2030 and drive gas self-sufficiency for the United Arab Emirates.
The deals 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, ADNOC outlined. The awards cover ADNOC’s onshore and offshore fields and will run for five years with an option for a further two years, the company highlighted.
“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,” Ahmed Al Jaber, the Minister of Industry and Advanced Technology and ADNOC Managing Director and Group CEO, said in a company statement.
“Not only do these awards support our 2030 strategy, they are expected to deliver over 80 percent of In-Country Value to the UAE and align with the UAE’s ‘Principles of the 50’ economic blueprint for sustainable growth,” he added in the statement.
Yaser Saeed Almazrouei, ADNOC’s upstream executive director, said, “the award to ADNOC Drilling demonstrates its robust offering and capabilities as well as its integral role in ADNOC’s future drilling activities”.
“The awards to all four companies will deliver substantial in-country value, and create new job opportunities for UAE Nationals, in line with the leadership’s wise directives,” he added.
Rigzone has asked Schlumberger, Halliburton and Weatherford for comment on ADNOC’s framework agreement awards but has not yet received a reply from any of the companies.
ADNOC’s latest deals are the latest in a line of high value awards. In January, the company announced the award of a $946 million (AED 3.47 billion) Engineering, Procurement, and Construction (EPC) contract for the strategic long-term development of its Umm Shaif field and in November 2021 it announced the award of two EPC contracts totaling $1.46 billion (AED 5.36 billion) for the Dalma Gas Development Project.
During the same month, ADNOC announced “record investments” worth up to almost $6 billion (AED 22 billion) to enable drilling growth. The investments came in the form of procurement awards to “top-tier” contractors for wellheads and related components, downhole completion equipment and related services, and liner hangers and cementing accessories, ADNOC highlighted in a company statement at the time.