Abu Dhabi National Oil Company (ADNOC) announced framework agreement awards valued at $1.94 billion (AED 7.1 billion) for wireline and perforation services. The awards build on the company’s recent investments in drilling-related equipment and services and support its strategy to boost crude oil production capacity to 5 million bbl/day by 2030 and drive gas self-sufficiency for the United Arab Emirates.
The framework agreements were awarded to ADNOC Drilling, Schlumberger, Halliburton and Weatherford.
“The framework agreements announced today 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,” said Sultan Ahmed Al Jaber, Minister of Industry and Advanced Technology and ADNOC Managing Director and Group CEO.
The framework agreement awards 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, covering services including cased hole and open hole, as well as perforation. This reflects the company’s expanded service profile as a result of its transformation into a fully integrated drilling services company following the award to Baker Hughes of a 5% share in the company in 2018.
“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,” said Yaser Saeed Almazrouei, ADNOC Upstream Executive Director
The awards 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. The awards will also enable hundreds of millions of dollars in cost savings.
As an integral part of its 2030 strategy, ADNOC is optimizing its procurement strategy to reflect market dynamics, focusing on long-term contracts with an optimized number of suppliers that provide stable and reliable delivery at highly competitive rates. In November 2021, ADNOC announced investments of almost $6 billion (AED 22 billion) 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.