Page 13 - MEOG Week 46 2021

MEOG PROJECTS & COMPANIES MEOG

ADNOC to invest in drilling

equipment amid output push

UAE ABU Dhabi National Oil Co. (ADNOC) $337mn worth of similar five-plus-two-year
announced this week that it will spend up to contracts were awarded to Weatherford Bin
$6bn to acquire drilling equipment to support Hamoodah and Baker Hughes agent Uni-Arab
its planned oil production capacity increase from Engineering & Oilfield Service for liner hangers
4mn barrels per day (bpd) to 5mn bpd. and cementing accessories and to local agents of
Under the investment, the company has Downhole Products, NeOz Energy, and Sledge-
made procurement awards to contractors for hammer for cementing accessories.
well completion equipment, with local subsidi- The UAE’s Minister of Industry and
aries and agents of Baker Hughes, Schlumberger, Advanced Technology, and ADNOC managing
TechnipFMC and Weatherford among the win- director and CEO, HE Dr Sultan Al Jaber, said
ning firms. these “world record investments in drilling-re-
Of the total investment, around $1.6bn lated equipment underline our commitment to
worth of the equipment will be manufactured responsibly unlocking our world-scale hydro-
in the UAE and nearly 60% of the total is seen carbon resources and expanding our produc-
flowing back into the Emirati economy during tion capacity to continue providing the world
the contracts’ duration – an important factor in with some of the least carbon-intensive barrels
ADNOC’s In-Country Value (ICV) programme. for decades to come.”
ADNOC will spend up to $3.27bn on the pro- The investment follows the recent initial
curement of wellheads and related components, public offering (IPO) of the company’s ADNOC
with Gulf Automation Services & Oilfield Sup- Drilling subsidiary on the Abu Dhabi Securities
plies (GASOS) and Al Ghaith Oilfield Supplies & Exchange (ADX).
Services Co., the Emirati agents for TechnipFMC The listing was more than 30 times over-
and Baker Hughes, respectively, taking a 50:50 subscribed, raised $1.1bn for ADNOC which
split of the 10-year contract award. reduced its stake to 84% with Baker Hughes
A further $2.34bn has been earmarked for holding 5%.
downhole completion equipment (DCE) with ADNOC Drilling is the largest driller in the
five-year contracts to Schlumberger Middle region and has a fleet of 107 rigs, 96 of which are
East and Weatherford Bin Hamoodah valued at owned, and 11 rigs rented. These comprise 75
up to $1.41bn and $931mn each, with options to onshore rigs, 20 offshore jack-up rigs, 11 island
extend for a further two years. rigs and a self-propelled barge.™

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