ADNOC to invest AED 22 billion to grow drilling operations

The Abu Dhabi National Oil Company (ADNOC) has announced an investment of nearly AED 22 billion to grow its drilling operations and boost crude oil production.

The oil company will raise its production levels to five million barrels per day by 2030, as it focuses on gas self-sufficiency for the UAE.

The announcement was made at the Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC) and follows the recent successful listing of ADNOC Drilling on the Abu Dhabi Securities Exchange (ADX).

Almost 60 per cent of the awards’ total value could flow back into the UAE’s economy under ADNOC’s successful In-Country Value (ICV) programme over time.

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.

Dr. Sultan bin Ahmed Al Jaber, Minister of Industry and Advanced Technology and ADNOC Managing Director and Group CEO, said, “ADNOC’s world record investments in drilling-related equipment underlines 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.

"The awards were secured at highly competitive rates, enabling substantial cost savings for ADNOC and underpinning our broader efforts to drive commerciality and value across our entire portfolio."

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.

The awards are expected to enable hundreds of millions of dirhams in cost savings.

As an integral part of its 2030 strategy, ADNOC is optimising its procurement strategy to reflect market dynamics, focusing on long-term contracts with a reduced number of suppliers that provide stable and reliable delivery at highly competitive rates.