ADNOC invests more than $750 million in drilling services
The three contracts are for integrated rigless services across six artificial island in the Upper Zakum and Satah Al Razboot.
The Abu Dhabi National Oil Company (ADNOC) awarded three contracts worth a combined $763.7 million (AED2.8 billion) in integrated rigless services across six of its artificial islands in the Upper Zakum and Satah Al Razboot (SARB) fields.
The contracts were awarded by ADNOC Offshore to Schlumberger, ADNOC Drilling, and Halliburton, as part of its plan to expand production capacity to 5 million barrels per day by 2030.
Yaser Saeed Almazrouei, ADNOC Upstream Executive Director, said, "These important awards for integrated rigless services will drive efficiencies of drilling and related services, and optimise costs in our Offshore operations as we ramp up our drilling activities to increase our production capacity and enable gas self-sufficiency for the UAE."
Schlumberger’s share of the award is valued at $381.18 million (AED1.4 billion); ADNOC Drilling’s share is valued at $228.71 million (AED839.58 million), and Halliburton’s share is valued at $153.87 million (AED564.85 million).
The scope of the contracts includes coiled tubing services with thru-tubing downhole tools, stimulation services, including equipment and chemicals/fluid systems, surface well testing services, wireline, and production logging services and tools, saturation monitoring, and well integrity.
"The contractors bring best-in-class expertise and technologies with a proven track record in the industry and ADNOC Drilling’s scope reflects its expanded service profile following its successful transformation into a fully integrated drilling services (IDS) company, enabling it to offer its clients start-to-finish well drilling and construction services," Almazrouei added. "Importantly, the high In-Country Value generated from the awards will stimulate new business opportunities for the private sector and support the UAE’s post-Covid economic growth."
Over 80% of the total award value will flow back into the UAE's economy under ADNOC’s In-Country Value (ICV) programme over the 5-year duration of the contracts.
Ahmad Saqer Al-Suwaidi, CEO of ADNOC Offshore, said, "These contracts are an important contributor to ADNOC Offshore’s plans to build our production capacity to over 2 million barrels a day in the coming years to support the ADNOC Group’s smart growth strategy.
The award follows a highly competitive bid process, which included a rigorous assessment of how much of the contract value would support the growth and diversification of the UAE’s economy through ADNOC’s In-Country Value Programme."
The six artificial islands covered by the awards are Asseifiya, Ettouk, Al Ghallan, and Umm Al Anbar in the Upper Zakum field and Al Qatia and Bu Sikeen in the SARB field.
Artificial islands provide significant cost and environmental benefits, particularly in shallow water, by enabling the use of lower-cost land-drilling rigs instead of higher-cost offshore jack-up drilling rigs.
Credit to www.oilandgasmiddleeast.com