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Adnoc invests Dh2.8b in rigless services to boost output to 5mbpd

Issac John /Dubai
issacjohn@khaleejtimes.com Filed on July 14, 2021



The six artificial islands covered by the awards are Asseifiya, Ettouk, Al Ghallan, and Umm Al Anbar in the Upper Zakum field and Al Qatia and Bu Sikeen in the SARB field. — Supplied photos

The oil major said the investment is in the form of three contracts awarded by Adnoc Offshore to Schlumberger, Adnoc Drilling, and Halliburton after a competitive tender process.


The Abu Dhabi National Oil Company (Adnoc) announced on Wednesday an investment of Dh2.8 billion in integrated rigless services across six of its artificial islands in the Upper Zakum and Satah Al Razboot (SARB) fields to support its production capacity expansion to five million barrels per day (mmbpd) by 2030.

The oil major said the investment is in the form of three contracts awarded by Adnoc Offshore to Schlumberger, Adnoc Drilling, and Halliburton after a competitive tender process.

Schlumberger’s share of the award is valued at Dh1.4 billion; Adnoc Drilling’s share is valued at Dh839.58 million, and Halliburton’s share is valued at Dh564.85 million, the statement said.

Over 80 per cent of the total award value will flow back into the UAE economy under Adnoc’s In-Country Value (ICV) programme over the 5-year duration of the contracts, reinforcing Adnoc’s commitment to ensuring more economic value remains in the country from the contracts it awards.

Yaser Saeed Almazrouei, Adnoc Upstream executive director, said the awards for integrated rigless services would drive efficiencies of drilling and related services, and optimise costs in its offshore operations as Adnoc ramps up its drilling activities to increase production capacity and enable gas self-sufficiency for the UAE.

“The contractors bring best-in-class expertise and technologies with a proven track record in the industry and Adnoc Drilling’s scope reflects its expanded service profile following its successful transformation into a fully integrated drilling services (IDS) company, enabling it to offer its clients start-to-finish well drilling and construction services. Importantly, the high In-Country Value generated from the awards will stimulate new business opportunities for the private sector and support the UAE’s post-Covid economic growth,” said Almazrouei.

Ahmad Saqer Al Suwaidi, CEO of Adnoc Offshore, said the new contracts are an important contributor to Adnoc Offshore’s plans to build its production capacity to over two million barrels a day in the coming years to support the Adnoc Group’s smart growth strategy.

“The award follows a highly competitive bid process, which included a rigorous assessment of how much of the contract value would support the growth and diversification of the UAE’s economy through Adnoc’s In-Country Value Programme,” said Al Suwaidi.

The scope of the contracts includes coiled tubing services with thru-tubing downhole tools, stimulation services, including equipment and chemicals/fluid systems, surface well testing services, wireline, and production logging services and tools, saturation monitoring, and well integrity, Adnoc said.

The six artificial islands covered by the awards are Asseifiya, Ettouk, Al Ghallan, and Umm Al Anbar in the Upper Zakum field and Al Qatia and Bu Sikeen in the SARB field. Artificial islands provide significant cost and environmental benefits, particularly in shallow water, by enabling the use of lower-cost land-drilling rigs instead of higher-cost offshore jack-up drilling rigs, the oil giant said.

Adnoc has a proven record of developing artificial islands and drilling the Middle-East’s longest wells, as part of its continued commitment to protecting the UAE’s marine environment while enabling greater operational efficiencies and safety.

Adnoc said it is optimising its procurement strategy to reflect market dynamics in line with its 2030 strategy, and focusing on long-term contracts with a reduced number of suppliers that provide stable and reliable delivery at highly competitive rates.

— issacjohn@khaleejtimes.com

author

Issac John

Editorial Director of Khaleej Times, is a well-connected Indian journalist and an economic and financial commentator. He has been in the UAE's mainstream journalism for 35 years, including 23 years with Khaleej Times. A post-graduate in English and graduate in economics, he has won over two dozen awards. Acclaimed for his authentic and insightful analysis of global and regional businesses and economic trends, he is respected for his astute understanding of the local business scene.





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