ADNOC Drilling inks agreement to buy two new jack-up rigs for $220mn

By Shilpa Annie Joseph, Official Reporter
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Adnoc Drilling acquires 2 offshore jack-up rigs
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UAE-based largest national drilling firm, ADNOC Drilling has signed an agreement to acquire two premium high-specification Gusto MSC CJ46 design offshore jack-up drilling units.

The company said in a statement that “the rigs will be delivered into Abu Dhabi waters and become operational during the fourth quarter of 2023 with meaningful revenue contribution from 2024.”

The acquisition is part of ADNOC Drilling’s fleet expansion and growth strategy, which is a key enabler of ADNOC’s accelerated production capacity growth to meet rising global energy demand.

Abdulrahman Abdullah Al Seiari,
Abdulrahman Abdullah Al Seiari CEO – ADNOC Drilling

“The acquisition of these premium jack-up rigs will support one of our major customers, ADNOC Offshore, with its drilling and completion services requirements, as it delivers accelerated production capacity. It is the next step in the execution of our strategy to rapidly grow our business, significantly boost revenue, and increase shareholder returns. These rigs further cement our position as one of the world’s largest offshore jack-up rig fleet owners and support our plan to grow our overall fleet to 142 owned rigs by 2024.”

The combined rig acquisition cost is $220 million and it’s included in the company’s capital expenditure guidance. With this acquisition, the company will almost double its offshore jack-up rig fleet since early 2021, with further significant expansion expected from now till the end of 2024.

“As the company’s new rigs enter the fleet, ADNOC Drilling expects to boost its financial and operating performance to the advantage of its customers, shareholders, and the UAE. ADNOC Drilling is a key enabler of ADNOC’s accelerated production capacity growth,” as per the statement.

Last month, ADNOC Drilling signed a $75 million agreement for the purchase of six newbuild hybrid power land rigs.

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