Page 13 - MEOG Week 20 2021

MEOG TENDERS MEOG

ADNOC awards Bu Hasa

contract as IPO talks continue

UAE ABU Dhabi National Oil Co. (ADNOC) this Bab oilfield.
week awarded a major engineering, procure-
ment and construction (EPC) contract for work Drilling IPO
on the Bu Hasa oilfield while kicking off talks Meanwhile, banks working with ADNOC are
with potential investors ahead of the listing of its reported to have begun virtual meetings with
drilling unit. potential investors in the initial public offering
The state oil firm announced on May 18 that (IPO) of ADNOC Drilling.
its ADNOC Onshore subsidiary had awarded Reuters quoted two well-placed sources as
a contract worth $318mn for the connection saying that banks have been scheduling calls
of recently drilled smart wells to the main pro- with local, regional and international institu-
duction facilities at Bu Hasa to “sustain produc- tional investors to gauge appetite for the planned
tion capacity of 650,000 barrels per day [bpd] at sale.
ADNOC’s largest onshore asset”. If launched, the IPO is expected to be carried
The contract was split into two packages, out during Q3, with sources suggesting it could
which were awarded to China Petroleum Pipe- fetch $1bn.
line Engineering Co. (CPPEC) and Robt Stone ADNOC Drilling is the largest driller in the
for a duration of three years, with an optional region and has a fleet of 75 onshore rigs, 20 off-
two-year extension. shore jack-up rigs, and 11 island rigs.
The $158.6mn package 1 was awarded to In October 2018, GE subsidiary Baker
CPPEC, while package two, which is valued at Hughes (BHGE) acquired a 5% stake in the
$159.1mn, went to Robt Stone following a com- company for $550mn, valuing the subsidiary at
petitive tender process. $11bn, with the companies advised on the trans-
Both companies won contracts from action by Citigroup and Moelis & Co.
ADNOC in Q4 2020, with CPPEC picking up ADNOC Drilling’s fleet will be key to the
front-end engineering and design (FEED) work parent firm achieving its crude production goals
for the UAE gas grid and Robt Stone chosen to of raising output from 4mn bpd to 5mn bpd by
install flowlines and wellhead tie-ins wells at the 2030.™

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