Page 5 - MEOG Week 39 2022

MEOG COMMENTARY MEOG

engineering, procurement and construction Drilling’s $140mn expenditure to add two more
(EPC) contract worth $173mn to expand the jack-ups, taking its number of jack-ups to 32 out
capacity of the plant, which the Emirati company of an overall fleet of 108.
said would “support the production evaluation Since listing on the Abu Dhabi Securities
of nearby exploration blocks”. Exchange (ADX) in October 2021, the company
After processing at Asab, stabilised crude is has added 12 rigs to its fleet and has a $2.5-3bn
transported to marine terminals via ADNOC’s capital expenditure programme to fund its strat-
pipeline infrastructure. egy of reaching 122 wholly-owned rigs by the
ADNOC Onshore contributes more than half end of 2024.
of the company’s 4.2mn bpd capacity, mainly Following the IPO, the parent firm holds
from Bu Hasa (650,000 bpd), Bab (450,000 bpd) 84% in ADNOC Drilling, Baker Hughes 5% and
and Asab. Helmerich & Payne 1%, with the remaining 11%
floated on the Abu Dhabi Securities Exchange
Offshore push (ADX).
Meanwhile, ADNOC Offshore is seeking to This push is receiving a helping hand from
its contribution to the national total to 2mn the company’s parent firm, with ADNOC Drill-
bpd and is focusing on expanding output at ing winning nearly $5.5bn worth of work to
Upper Zakum – the world’s fourth largest oil- “support the expansion of ADNOC’s crude oil
field – from 750,000 bpd to 1mn bpd by 2024, production”, with neither party disclosing the
and Lower Zakum to 450,000 bpd by 2025 and names of fields covered by the agreements.
500,000 bpd by 2028. These deals alone account for just under a
The local National Petroleum Construction third of the almost $18bn ADNOC has commit-
Co. (NPCC) has also been hired on a $946mn ted in the last year towards increasing drilling
EPC deal to maintain production at the offshore activity as part of the capacity push.
Umm Shaif oilfield at 275,000 bpd. Several exploration successes have been
Increased oil output will be complemented announced over the past 12 months, covering
by the development of the giant offshore Ghasha several billion barrels of oil and trillions of cubic
concession, which contains the Dalma, Gha- feet of gas, and while the UAE has set an ambi-
sha, Hail, Mubarraz, Nasr and Satah al-Razboot tious target of achieving Net Zero by 2050, the
(SARB) fields and is the world’s largest offshore Emirate is set to continue adding to its oil pro-
sour gas development. duction capabilities with a view to decarbonising
The expansion of offshore capabilities is its local market and exporting crude for external
sure to have been front and centre of ADNOC consumption.™

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