ADNOC Drilling wins $2bn worth offshore jack-up contracts

By Shilpa Annie Joseph, Official Reporter
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ADNOC Drilling secures contracts
Rep. Image | Courtesy: ADNOC

UAE-based largest national drilling firm, ADNOC Drilling has confirmed the award of five 10-year contracts, totaling approximately $2 billion, in support of ADNOC Offshore’s growing drilling operations.

The contractual conditions, particularly the duration, were agreed with the client in light of the strength of the offshore jack-up market with higher day rates.

The contracts supporting drilling operations across five fields in ADNOC’s offshore portfolio are for the charter of five high-specification, premium jack-up rigs along with all required manpower and equipment.

As per the statement, “The new rigs are central to ADNOC Drilling’s rigorous decarbonization strategy and the company’s commitment to supporting ADNOC’s target to reduce greenhouse gas intensity by 25 percent by 2030, as well as the UAE Net Zero by 2050 strategic initiative.”

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

“We are pleased to have been awarded these important contracts. Long-term contracts like these are the backbone of our business model, providing a clear line of sight on future earnings. As we continue to grow our fleet, our shareholders will benefit from the opportunity to be directly invested in ADNOC’s accelerated production capacity growth, which is driving faster revenue growth and progressive, long-term shareholder returns while responding to the world’s rising energy demand.”

The rigs will commence activity progressively from the end of 2023, with significant revenue expected in 2024 and the first full-year revenue contribution from 2025. The revenue associated with these contracts is included in the company’s full-year 2023 and medium-term guidance.

The five rigs have been acquired as part of the company’s fast-tracked rig fleet expansion program, designed to enable the delivery of ADNOC’s accelerated production capacity growth to responsibly meet rising global energy demand.

According to the statement, “The new rigs, SALAMAH, AL SAADIYAT, AL SILA, RAMHAN, and YAS, will be among the most capable, high-specification rigs working in the Arabian Gulf. Each of the five rigs will be equipped with a battery energy storage system to increase efficiency and reduce emissions. The hybrid power technology system stores energy in its batteries to use when there is a need for continuous power or to provide instant extra power when there is an increase in demand.”

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