ADNOC announces record investments of up to $6bln in oil & gas drilling

$1.6bln worth of drilling equipment to be made in the UAE

  
Image source Adnoc.

Image source Adnoc.

The Abu Dhabi National Oil Co. (ADNOC) has announced investments of up to $6 billion to grow its drilling business as it boosts its crude oil production capacity to 5 million barrels per day (mmbpd) by 2030 and tries to make the UAE self-sufficient in gas.

The investments are in the form of contracts for activities related to drilling for oil and gas and completing wells, the state energy company said on Tuesday at the Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC).

The investment follows the recent successful listing of ADNOC Drilling the Abu Dhabi Securities Exchange (ADX).

Almost 60 percent of the total value of the awards could flow back into the UAE’s economy under ADNOC’s in-country value (ICV) program, the oil company said.

More than $900 million worth of wellheads and over $700 million worth of downhole completion equipment will be manufactured in the UAE as well as all liner hangers.

“In addition, $185 million in foreign direct investment (FDI) will flow into the UAE’s economy to establish two wellheads manufacturing and assembly facilities, enhance drilling-related equipment manufacturing and assembly, and enable local manufacturing of 20 new drilling completion products thereby strengthening the UAE’s drilling supply chain with vendor managed inventory," according to a statement.

Award details:

  • $3.27 billion procurement deal for wellheads and related components secured by Gulf Automation Services & Oilfield Supplies (GASOS), UAE agents for TechnipFMC; and Al Ghaith Oilfield Supplies & Services Company, UAE agents for Baker Hughes.
  • $2.34 billion procurement deal for downhole completion equipment and related services was awarded to Schlumberger Middle East S.A ($1.41 billion) and Weatherford Bin Hamoodah Co. ($931 million).
  • $337 million procurement award for liner hangers and cementing accessories was secured by Weatherford Bin Hamoodah, Al Ghaith Oilfield Services, Best Pick General Trading LLC, UAE agents for NeOz Energy, and Al Mansoori Specialized Engineering LLC, agents for Sledgehammer.

(Writing by Brinda Darasha; editing by Seban Scaria) 

brinda.darasha@refinitiv.com 

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© ZAWYA 2021

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