The Abu Dhabi National Oil Company (ADNOC) has invested $763.7 million in integrated rigless service contracts for work across six of its artificial islands in the Upper Zakum and Satah Al Razboot (SARB) fields to support its production capacity expansion to 5 million BOE/day by 2030.
The investment is in the form of three contracts awarded by ADNOC Offshore to Schlumberger, ADNOC Drilling, and Halliburton after a competitive tender process. Schlumberger’s share of the award is valued at $381.18 million, ADNOC Drilling’s share is valued at $228.71 million, and Halliburton’s share is valued at $153.87 million.
“These important awards for integrated rigless services will drive efficiencies of drilling and related services, and optimize costs in our Offshore operations as we ramp up our drilling activities to increase our production capacity and enable gas self-sufficiency for the UAE. The contractors bring best-in-class expertise and technologies with a proven track record in the industry and ADNOC Drilling’s scope reflects its expanded service profile following its successful transformation into a fully integrated drilling services (IDS) company, enabling it to offer its clients start-to-finish well drilling and construction services. Importantly, the high In-Country Value generated from the awards will stimulate new business opportunities for the private sector and support the UAE’s post-Covid economic growth,” said Yaser Saeed Almazrouei, ADNOC Upstream Executive Director.
The scope of the contracts includes coiled tubing services with thru-tubing downhole tools, stimulation services, including equipment and chemicals/fluid systems, surface well testing services, wireline, and production logging services and tools, saturation monitoring, and well integrity.
Previously, ADNOC Offshore’s rigless services were provided through several discrete service-specific contracts. Unifying the scope through integrated service contracts, underpins ADNOC’s smart approach to procurement and provides ADNOC Offshore with operational flexibility while enabling cost efficiencies and single point responsibility by the contractors.
“These contracts are an important contributor to ADNOC Offshore’s plans to build our production capacity to over 2 million barrels a day in the coming years to support the ADNOC Group’s smart growth strategy. The award follows a highly competitive bid process, which included a rigorous assessment of how much of the contract value would support the growth and diversification of the UAE’s economy through ADNOC’s In-Country Value Program,” said Ahmad Saqer Al-Suwaidi, CEO of ADNOC Offshore.
The six artificial islands covered by the awards are Asseifiya, Ettouk, Al Ghallan, and Umm Al Anbar in the Upper Zakum field and Al Qatia and Bu Sikeen in the SARB field. Artificial islands provide significant cost and environmental benefits, particularly in shallow water, by enabling the use of lower-cost land-drilling rigs instead of higher-cost offshore jack-up drilling rigs.
ADNOC Drilling’s transformation into a fully integrated drilling services provider followed the award to Baker Hughes of a 5% share in the company, which is now capable of delivering start-to-finish drilling and well-construction services onshore and offshore with proven efficiency gains. As of May 2021, ADNOC Drilling has delivered over 180 IDS wells since 2018, achieving an efficiency improvement of close to 50%, which resulted in over $210 million (AED767 million) savings.