UAE state-owned oil company, Abu Dhabi National Oil Company (ADNOC) has awarded framework agreements valued at $1.94 billion to support drilling growth.
The pacts for wireline logging and perforation services are the largest of their kind in the oil and gas industry and were awarded to ADNOC Drilling, Schlumberger Middle East, Haliburton Worldwide Limited Abu Dhabi and Weatherford Bin Hamoodah Company after a “competitive” tender process.
Wireline logging involves continuously measuring the properties of rock formations to guide drilling operations while perforation creates tunnels in the wellbore to allow fluid to flow in from the reservoir.
ADNOC Drilling’s share of the awards is the largest and it covers services including cased hole and open hole as well as perforation.
The framework agreement awards cover ADNOC’s onshore and offshore fields and will run for five years with an option for a further two years. Furthermore, skilled employment opportunities will be created for UAE nationals by successful companies who will also work to identify local manufacturing opportunities.
“The framework agreements announced today are a continuation of ADNOC’s unprecedented investment in services to enable the expansion of drilling activity required to responsibly unlock the UAE’s leading low-cost and low-carbon intensity oil as well as the nation’s gas resources. Not only do these awards support our 2030 strategy, but they are also expected to deliver over 80 percent of In-Country Value to the UAE and align with the UAE’s ‘Principles of the 50’ economic blueprint for sustainable growth.”
The awards build on ADNOC’s recent record investments in drilling-related equipment and services and support its strategy to boost crude oil production capacity to 5 million barrels per day (mmbpd) by 2030 and drive gas self-sufficiency for the UAE.
Mr. Yaser Saeed Almazrouei, ADNOC Upstream Executive Director, stated, “The award to ADNOC Drilling demonstrates its robust offering and capabilities as well as its integral role in ADNOC’s future drilling activities. The awards to all four companies will deliver substantial in-country value, and create new job opportunities for UAE nationals, in line with the Leadership’s wise directives.”
The framework agreement awards will support ADNOC’s requirement to drill thousands of new wells to expand its production capacity and remain a leading low-cost, low-carbon oil producer. The awards will also enable hundreds of millions of dollars in cost savings.