UAE state-owned oil company, Abu Dhabi National Oil Company (ADNOC) has awarded framework agreements valued at $658 million (AED 2.4 billion) for cementing services as it continues to invest to boost drilling growth and, expand its crude oil production capacity.
According to the company statement, the framework agreements were awarded to Haliburton Worldwide Limited Abu Dhabi (Halliburton), Baker Middle East (Baker), Emirates Western Oil Well Drilling & Maintenance Co. (Emirates Western), NESR Energy Services (NESR), and Emjel Oil Field Services (Emjel), following a competitive tender process.
The company said that “these awards cover ADNOC’s onshore and offshore fields and will run for five years with an option for a further two years.”
“The awards for cementing services will support the ongoing expansion of ADNOC’s drilling activities as we grow our production capacity, strengthening our position as a reliable global supplier of some of the world’s most carbon-efficient barrels. In line with the UAE Leadership’s wise directives and as part of our strategy, we are prioritizing in-country value and these awards will enable careers for UAE Nationals and new opportunities for the private sector, directly supporting the objectives of the UAE’s Principles of the 50.”
As per the reports, over 65 percent of the award value could flow back into the UAE economy under ADNOC’s In-Country Value program over the duration of the agreements.
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 (AED31.2 billion). These deals will support ADNOC’s requirement to drill thousands of new wells as it increases its crude oil production capacity to five million barrels per day (mmbpd) by 2030 and drives gas self-sufficiency for the UAE.