Drilling

ADNOC Drilling confirms $1.6 billion integrated drilling fluids services award

World Oil Staff November 02, 2022

(WO) — ADNOC Drilling Company PJSC has confirmed the award of a five-year framework agreement valued at up to $1.6 billion for integrated drilling fluids services (IDFS) to support the expansion of ADNOC’s lower-cost and lower-carbon intensive production capacity, as it continues to respond to growing global demand for energy.

The award covers ADNOC’s onshore and offshore fields and will see an additional $750 million above guidance added to Oilfield Services (OFS) revenue, or $150 million per year.

The contract award brings the total value of awards confirmed by ADNOC Drilling in 2022 to $8.85 billion, of which $1.15 billion has been incremental to the company’s previously disclosed revenue guidance.

“Integrated drilling fluids services are crucial in support of delivering the wells needed to meet ADNOC’s strategy to increase its production capacity and achieve gas self-sufficiency for the UAE,” Abdulrahman Abdullah Al Seiari, CEO of ADNOC Drilling, said. “This award, one of several multibillion-dollar long-term contracts that we have secured in 2022, reaffirms our strategic value to ADNOC not just as a drilling provider but as a major OFS player.

Already a market leader in the region, ADNOC Drilling is committed to expanding its offering to further capitalize on market opportunities. The company plans to double its OFS revenues by 2025, and the IDFS award will accelerate the company’s ability to achieve and exceed that target.

Last month, ADNOC Drilling celebrated one year since listing on the Abu Dhabi Securities Exchange. At the time, the initial public offering was the largest listing in the history of the exchange and was 31 times oversubscribed. As of September 2022, the company had delivered a Total Shareholder Return of 53.7%.

“Contracts of this scale help us to ensure that we deliver strong and sustained growth for the UAE and ADNOC Drilling’s shareholders,” Al Seiari said. “The addition of $750 million in above-guidance revenue solidifies that growth trajectory.”