Abu Dhabi National Oil Company (ADNOC) announced, framework agreement awards valued at $1.94 billion (AED 7.1 billion) to enable drilling growth.
The awards build on ADNOC’s recent record investments in drilling-related equipment and services and support its strategy to boost crude oil production capacity to 5 million barrels per day (mmbpd) by 2030 and drive gas self-sufficiency for the United Arab Emirates (UAE).
The framework agreements for wireline logging and perforation services are the largest of such awards in the oil and gas industry and were awarded to following companies:
- ADNOC Drilling Company P.J.S.C (ADNOC Drilling),
- Schlumberger Middle East S.A (Schlumberger),
- Haliburton Worldwide Limited Abu Dhabi (Halliburton)
- Weatherford Bin Hamoodah Company LLC (Weatherford),
Wireline logging involves continuously measuring the properties of rock formations to guide drilling operations while perforation creates tunnels in the wellbore to allow fluid to flow in from the reservoir.
The framework agreement awards cover ADNOC’s onshore and offshore fields and will run for five years with an option for a further two years. Furthermore, skilled employment opportunities will be created for UAE Nationals by the successful companies who will also work to identify local manufacturing opportunities.
ADNOC Drilling’s share of the awards is the largest and it covers services including cased hole and open hole as well as perforation. This reflects the company’s expanded service profile as a result of its transformation into a fully Integrated Drilling Services (IDS) company following the award to Baker Hughes of a 5% share in the company in 2018.
The framework agreement awards will support ADNOC’s requirement to drill thousands of new wells to expand its production capacity and remain a leading low-cost, low-carbon oil producer. The awards will also enable hundreds of millions of dollars in cost savings, statement mentioned.
