Adnoc to invest record US$6bn in drilling

Adnoc is investing US$6 billion in expanding its drilling operations as it looks to grow its crude oil production capacity to 5 million barrels per day by 2030.

According to a statement released by Adnoc, the investment will take the form of procurement awards granted to top-tier contractors for wellheads and associated components, downhole completion equipment and related services, and liner hangers and cementing accessories. All of which are pertinent to drilling for oil and gas and completing wells.

“Adnoc’s world-record investment 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,” said Dr. Sultan Al Jaber, UAE Minister of Industry and Advanced Technology and Adnoc managing director and group chief executive.

The contracts have been awarded to a diverse crop of domestic and international contractors. Gulf Automation Services & Oilfield Supplies, UAE agents for TechnipFMC, and Al Ghaith Oilfield Supplies & Services Company, UAE agents for Baker Hughes, secured US$3.27bn worth of contracts related to the procurement of wellheads and related components for drilling operations.

Schlumberger Middle East and Weatherford Bin Hamoodah company secured another contract for downhole completion equipment and related services. The deal is valued at US$2.34bn and is scheduled to run over five years, with the possibility of a two-year extension.