Over 75% of the award value could flow back into the UAE economy under ADNOC’s In-Country Value programme
Abu Dhabi National Oil Company (ADNOC) recently announced the award of five framework agreements valued at US$ 1.83 bn (AED 6.72bn) for directional drilling and logging while drilling (LWD) to support its efforts to expand production capacity of its low carbon oil and gas resources to help meet the world’s growing demand for energy.
The framework agreements are the largest of such awards in the oil and gas industry and were awarded to Al Ghaith Oilfield Supplies and Services Company, Al Mansoori Directional Drilling Services; Schlumberger Middle East; Haliburton Worldwide Limited Abu Dhabi and Weatherford Bin Hamoodah Company following a competitive tender process.
The awards cover ADNOC’s onshore and offshore fields and will run for five years with an option for a further two years. Over 75% of the award value could flow back into the United Arab Emirates (UAE) economy under ADNOC’s In-Country Value programme over the duration of the agreements.
“These awards build on our ongoing investments in drilling services and they will deliver substantial in-country value for the nation to support economic growth and diversification, in line with the UAE Leadership’s wise directives,” commented Yaser Saeed Almazrouei, Executive Upstream, ADNOC Upstream.
The framework agreement awards will support ADNOC’s requirement to drill thousands of new wells to expand its production capacity to five million barrels per day (mmbpd) by 2030, enable gas self-sufficiency for the UAE and remain a leading low-cost, low-carbon oil producer. The awards will also enable hundreds of millions of dollars in cost savings.