Over US$1.8bn worth of drilling-related equipment to be made in the UAE
The Abu Dhabi National Oil Company (ADNOC) announced today, record investments worth up to almost US$ 6bn (AED22 billion) to enable drilling growth as it boosts its crude oil production capacity to 5mn barrels per day (mmbpd) by 2030 and drives gas self-sufficiency for the UAE.
The announcement was made at the recently concluded Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC) and follows the recent successful listing of ADNOC Drilling on the Abu Dhabi Securities Exchange (ADX).
The investments are in the form of procurement awards to top-tier contractors for wellheads and related components, Downhole Completion Equipment (DCE) and related services, and liner hangers and cementing accessories, all crucial in drilling for oil and gas and completing wells.
Almost 60% of the total value of the awards could flow back into the UAE’s economy under ADNOC’s successful In-Country Value (ICV) program over the duration of the awards.
“ADNOC’s world record investments in drilling-related equipment underline our commitment to responsibly unlocking our world-scale hydrocarbon resources and expanding our production capacity to continue providing the world with some of the least carbon-intensive barrels for decades to come,” observed HE Dr. Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology, and ADNOC Managing Director and Group CEO.
The procurement award for wellheads and related components is worth up to US$ 3.27bn (AED 12bn), making it the world’s largest in this category. The scope of the awards cut across the ADNOC Group and will provide ADNOC with a robust supply chain of drilling-related equipment to enable its requirement to drill thousands of new wells as it expands its production capacity while maintaining its leading low-cost oil producer status.
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