Abu Dhabi National Oil Company (ADNOC) reported that it has obtained cost savings of $2 billion (Dhs7.36 billion) over the last five years by using new technology and digitalization to increase drilling efficiencies and maximize operations.
ADNOC achieved cost savings and productivity improvements through the use of fully integrated drilling services (IDS) and innovative methods to enhance drilling performance and economy through various initiatives, in addition to advanced technology.
The accomplishment is a testament to ADNOC’s continuing strategic investments in digitization and state-of-the-art technology to further enhance efficiency, optimize value and enable smart growth as part of its digital transformation.
ADNOC’s Real-Time Data Monitoring Center (RTMC), which tracks up to 120 well locations simultaneously in real-time and is powered by Big Data from live and historical operations, is a key enabler of the $2 billion cost savings of the company. The RTMC collects data to monitor the efficiency of drilling and the progress of delivery, which allows ADNOC to improve drilling operations by reducing non-productive time and improving productivity.
Yaser Saeed Almazrouei, ADNOC Upstream Executive Director, said, “The cost savings ADNOC unlocked highlight how we are accelerating the use of advanced technologies, digitalization and innovative drilling techniques to drive performance and reinforce our position as a leading provider of comprehensive drilling and well construction services while supporting our strategic objectives of creating a more profitable upstream business and maximizing value for the UAE.”
“The fact we have enabled substantial cost savings for ADNOC underlines our drive to enhance our capabilities and competitiveness. As a critical link in ADNOC’s upstream value chain, providing fully integrated drilling and associated services, we are reinforcing our performance to better support the delivery of ADNOC’s 2030 strategy. As part of this effort, we strengthened our rig fleet and expanded our service offering as well as accelerated our adoption of technology which is enabling us to drill more wells in less time.”
ADNOC Drilling has also provided more than 100 integrated drilling facilities (IDS) wells since 2018, achieving more than 35 percent productivity gain, which results in savings of over $170 million (AED624 million). This achievement followed the transfer a five percent share in ADNOC Drilling to Baker Hughes, transforming the business into a fully integrated drilling company capable of offering start-to-finish drilling and well-construction services.
The latest announcement was made at the virtual 16th annual Rig Owners Seminar. The event is being held on the sidelines of the Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC) and is being organized by ADNOC Drilling, a subsidiary of ADNOC, in collaboration with DNV GL.