$1.63 billion gig lands on ADNOC Drilling’s docket

UAE-based giant ADNOC Drilling has received a letter of award for integrated drilling services (IDS) from its sister company, ADNOC Offshore.

The drilling player believes the “landmark” $1.63 billion, five-year contract award reinforces its position within the ADNOC Group as a provider of advanced, integrated energy services. The award is also said to be part of its strategy to expand its fleet, service offerings, and capabilities.

ADNOC Drilling CEO Abdulrahman Abdulla Al Seiari noted: “We are immensely proud to secure this considerable award, which not only validates our strategic direction but also demonstrates the confidence ADNOC Offshore places in our capabilities. Our IDS offering delivers superior value and innovation, enabling us to play a pivotal role in reshaping the future of energy services in the region. This milestone underscores our commitment to operational excellence, and positions ADNOC Drilling as the partner of choice in an increasingly dynamic and complex energy landscape.

“This five-year award is a strong reflection of ADNOC Drilling’s long-term contracting model, which provides revenue visibility and stability over the contract period. It aligns with our disciplined approach to building a resilient business foundation, capable of generating consistent cash flow and supporting sustainable shareholder returns through the cycle.”

As informed, the contract encompasses directional drilling, drilling fluids, cementing, wireline logging, and tubular running services, incorporating what the firm says is advanced engineering and technical support for the delivery of extended reach and maximum reservoir wells offshore.

Since the drilling player says the demand for advanced, high-performance energy solutions is on the rise, the growth of its IDS portfolio is seen as a cornerstone of the company’s strategy to increase fleet utilization, diversify revenue streams, and boost sustainable and long-term growth and returns.

Tayba Al Hashemi, CEO of ADNOC Offshore, said: “ADNOC Drilling is a key enabler on our accelerated journey to responsibly meet the world’s growing energy needs. This contract gives us access to their cutting-edge capabilities and market-leading end-to-end services, which will maximize efficiency and generate significant value for our shareholders and the UAE.”

The UAE player considers the latest win as an endorsement of its commitment to operational excellence, innovation, and the adoption of artificial intelligence (AI) and advanced technologies. The firm claims to be transforming the energy services sector thanks to this approach.

In line with its AI-focused agenda, ADNOC Drilling’s joint venture (JV) with Alpha Dhabi, Enersol, is said to be pioneering AI-centric investments, aiming to build a scalable, future-facing, and advanced technology ecosystem. In November 2024, the JV announced the acquisition of a 100% equity stake in EV Holdings from Dunedin.

As for the drilling segment, the UAE firm welcomed two new premium high-specification jack-up rigs, Al Jurf and Dana, to its fleet in December 2024. The rigs are meant to help ADNOC fulfil its oil and gas production ambitions, including a five million barrel per day capacity target.