ADNOC awarded three framework agreements, valued at a combined $4 billion, for integrated drilling fluids services (IDFS) to support the ongoing expansion of its lower-cost and less carbon-intensive production capacity as it responds to growing global demand for energy.
The awards, which ADNOC says are the largest of their kind in the industry, were awarded to ADNOC Drilling, SLB and Halliburton. They cover ADNOC’s onshore and offshore fields and will run for five years with an option for a further two years.
“These record framework agreements for integrated drilling fluids services continue ADNOC’s significant investment in drilling-related services to enable the expansion of our production capacity and responsibly unlock the UAE’s leading low-cost, lower-carbon intensity hydrocarbons,” said Yaser Saeed Almazrouei, ADNOC Upstream Executive Director.
The framework agreements will enable investment in local manufacturing of equipment and facilities, including in liquid mud plants and a waste management facility, as well as key commodity chemicals.
ADNOC Drilling’s scope of the framework agreements is valued at up to $1.6 billion. This reflects the company’s transformation and expansion of its service profile into a fully integrated drilling services (IDS) company, following the development of its Oilfield Services division in partnership with Baker Hughes.