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The Abu Dhabi National Oil Co. (ADNOC) has awarded framework agreements worth $4 billion to grow its drilling business, the oil giant said on Tuesday, as it pushes forward with its strategy to boost crude oil production capacity to five million barrels per day (mmbpd) by 2030 and make UAE self-sufficient in gas.
The awards, the largest of their kind in the industry, were awarded to ADNOC Drilling Co., Schlumberger Middle East S.A. and Halliburton Worldwide Ltd. Abu Dhabi, the state-owned oil company said in a statement.
The contracts, for integrated drilling fluids services (IDFS) that will support the energy major's expansion of its production capacity, will cover its onshore and offshore fields and will run for five years with an option for a further two years.
More than 80% of the award value will flow back into the UAE economy under ADNOC’s In-Country Value programme.
ADNOC Drilling's share of the awards is valued at $1.6 billion. The company, which is backed by ADNOC listed on the Abu Dhabi Securities Exchange last year and has ramped up operations since.
Since November 2021, ADNOC has awarded over $16 billion in agreements for drilling-related equipment and services.
(Writing by Brinda Darasha; editing by Seban Scaria)
