With the expansion of business, ADNOC Drilling finally secured a five-year contract worth $412 million for their Oilfield Services. This contract would make ADNOC Drilling provide integrated drilling services for the growth of the Upper Zakum field, which is the largest producing field in ADNOC’s Offshore portfolio.
The terms of this contract have been specifically designed to drive more efficiency in workplaces, maintain a proper schedule, rig move time, and engage the work crew toward effective productivity. These terms benefit both parties: ADNOC Drilling and ADNOC Onshore.
The contract gives the complete drilling services to ADNOC, solely to ADNOC Drilling. It works towards advancing the growth and expansion plans of ADNOC Drilling. This will also work in increasing production efficiency and provide cost-saving solutions.
This contract holds great significance in fulfilling the goal of ADNOC Drilling towards doubling their oilfield services revenue in the span of the next two years.
ADNOC Drilling was awarded this contract worth $412 million by ADNOC Offshore and is scheduled to begin in the second quarter of 2023. This would boost the annual revenue by up to 20% as compared to last year, 2022. According to the sources, the company reported having 40 operational rigs last year with oilfield services that increased the revenue up to $405 million. And this year, it is expected to reach up to $550 million.
Talking about the subject, the Chief Executive Officer of ADNOC Drilling, Abdulrahman Abdullah Al Seiari shared, “We are extremely pleased to have been awarded such an important contract, which will contribute to the effective development of the Upper Zakum field and promote ADNOC to realize the accelerated production capacity that targets to supply energy responsibly to the world that witnesses the rising demand.”
He explained how this contract ascertains the delivery of the strategic objective of the company to expand their business of Oilfield services as they continue to work towards the development of increasing the OFS revenue twice by 2025. In fact, this contract specifically adds nearly 20 percent to the annual revenue of ADNOC Drilling, as compared to 2022.
Some of their prominent IDS contracts in 2022 include integrated drilling fluid services worth $1.6 billion, Ghasha Megaproject worth $1.3 billion, and wireline and perforation services worth $777 million.
ADNOC Drilling has been referred to as the market leader in the list made by The Abu Dhabi Securities Exchange with 40 operational IDS rigs as of 2022 and OFS revenue of up to $405 million with an increase of 23% last year. Based on that, the company aims to generate around $500 to $550 million in revenue by 2023.
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