ADNOC Drilling has won a five-year contract for the provision of Integrated Drilling Services (IDS) totaling $412 million from ADNOC Offshore starting in the second quarter of 2023.
ADNOC Drilling will provide IDS for the development of the Upper Zakum field, the largest producing field in ADNOC’s offshore portfolio.
Abdulrahman Abdullah Al Seiari, Chief Executive Officer of ADNOC Drilling, commented: “We are very pleased to have been awarded this important contract, which will contribute to the effective development of the Upper Zakum field and enable ADNOC to realize accelerated production capacity targets to responsibly supply energy to a world which sees continuously rising demand.
This contract award further demonstrates the delivery of our strategic objective to expand our Oilfield Services (OFS) business as we continue to work towards our goal of further doubling OFS revenues by 2025. This contract, alone, will add some 20% to our annual revenue compared with 2022. Our comprehensive market-leading drilling and completion services offering improves operational performance and efficiency, delivering considerable cost savings and reductions in well delivery times for our customers.”
In 2022, ADNOC Drilling had 40 operational IDS rigs, with OFS revenue reaching $405 million, an increase of 23% on the previous year. The Company has guided the market to expect the segment to generate $500 - $550 million in revenue in 2023.
Previous IDS contract awards in 2022 include a $1.3 billion award for the Ghasha Mega-project, $1.6 billion award for integrated drilling fluid services and a $777 million award for wireline and perforation services.
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