Adnoc Drilling secures a $412 million, five-year contract for Integrated Drilling Services (IDS) from Adnoc Offshore to develop the Upper Zakum field.
Adnoc Drilling Company PJSC announced on Thursday that it has secured a five-year contract worth $412 million from Adnoc Offshore for the provision of Integrated Drilling Services (IDS), beginning in the second quarter of 2023. The contract will see Adnoc Drilling provide services for the development of the Upper Zakum field, which is the largest producing field in Adnoc’s offshore portfolio.
The services provided by Adnoc Drilling are expected to increase the efficiency of production at the Upper Zakum project, deliver significant cost savings, and contribute to Adnoc’s plans to responsibly accelerate production capacity growth in response to the increasing global demand for energy.
Abdulrahman Abdullah Al Seiari, CEO of Adnoc Drilling, expressed satisfaction with the contract award, noting that it will contribute to the effective development of the Upper Zakum field and enable Adnoc to achieve accelerated production capacity targets. Al Seiari also highlighted the contract as a demonstration of Adnoc Drilling’s strategic objective to expand its Oilfield Services (OFS) business, with plans to double OFS revenues by 2025. This contract alone is expected to add approximately 20% to the company’s annual revenue compared to 2022.
Adnoc Drilling, a market leader in the region, is dedicated to expanding its comprehensive range of services in the OFS division. This expansion aims to enable efficient and competitive delivery of start-to-finish drilling and well completion for its customers’ benefit. In 2022, Adnoc Drilling had 40 operational IDS rigs, generating OFS revenue of $405 million, marking a 23% increase from the previous year. The company has projected the segment’s revenue to reach between $500 and $550 million in 2023.
Adnoc Drilling’s previous IDS contract awards in 2022 include a $1.3 billion award for the Ghasha Mega-project, a $1.6 billion award for integrated drilling fluid services, and a $777 million award for wireline and perforation services. These contracts further emphasize the company’s ongoing commitment to expanding its services and contributing to the growth of the energy sector in the region.
