Page 5 - MEOG Week 44 2022

MEOG COMMENTARY MEOG

ADNOC Drilling will support ADNOC Drilling has added 12 rigs to its fleet and has a
Offshore in expanding its contribution to the $2.5-3bn capital expenditure programme to
national total to 2mn bpd. This will focus on fund its strategy of reaching 122 wholly-owned
expanding output at Upper Zakum – the world’s rigs by the end of 2024. The current fleet com-
fourth largest oilfield – from 750,000 bpd to 1mn prises 105 wholly-owned rigs, including 28 off-
bpd by 2024, and Lower Zakum to 450,000 bpd shore jack-ups.
by 2025 and 500,000 bpd by 2028, with local firm Following the IPO, the parent firm holds
National Petroleum Construction Co. (NPCC) 84% in ADNOC Drilling, Baker Hughes 5% and
having been hired through a $946mn EPC deal Helmerich & Payne 1%, with the remaining 11%
to maintain production at the offshore Umm floated on the Abu Dhabi Securities Exchange
Shaif oilfield at 275,000 bpd. (ADX).
If the oil target is met, ADNOC is reported This push is receiving a helping hand from the
to be considering setting a further target of company’s parent firm, with ADNOC Drilling
reaching 6mn bpd by 2030, the date by which winning nearly $6bn worth of work to “support
it also intends to become self-sufficient in gas the expansion of ADNOC’s crude oil produc-
production. tion”, with neither party disclosing the names of
Increased oil output will be complemented fields covered by the agreements.
by the development of the giant offshore Ghasha ADNOC said that it has awarded its subsid-
concession, which contains the Dalma, Gha- iary $5.95bn worth of work “to maximise value
sha, Hail, Mubarraz, Nasr and Satah al-Razboot from Abu Dhabi’s offshore oil and gas resources”
(SARB) fields and is the world’s largest offshore with previous deals in August worth $3.43bn to
sour gas development. hire eight jack-ups.
Also this week, NPCC signed a deal with the These deals alone account for a significant
local Al Gharbia Pipe Co. to purchase line pipes portion of the $16bn+ ADNOC has committed
to build a new main gas line at Lower Zakum in the last year towards increasing drilling activ-
under its EPC deal for the asset, which is due to ity as part of the capacity push.
run until 2025. This and other ongoing work at Several exploration successes have been
Lower Zakum will increase gas production from announced over the last year, covering multiple
the field from 430mn cubic feet (12.2mn cubic billion barrels of oil and trillions of cubic feet of
metres) per day to 700 mmcf (19.8 mcm) per gas, and while the UAE has set an ambitious tar-
day. get of achieving Net Zero by 2050, the Emirate
is set to continue adding to its oil production
ADNOC Drilling’s rise capabilities with a view to decarbonising its
Since listing on the Abu Dhabi Securities local market and exporting crude for external
Exchange (ADX) in October 2021, ADNOC consumption.™

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