$1.7 billion drilling campaign for 144 wells unleashing additional oil & gas before 2025 ends while hinting at more to come

Three players, one of which is in the Middle East and two incorporated in the United States (U.S.), have given birth to the Turnwell joint venture, which is now in charge of handling an initial 144-well program, whose completion has been accelerated to unlock unconventional oil and gas resources from the wells by the fourth quarter of 2025 while giving out clues about the potential for a significant number of extra wells being on the horizon in the second phase.

The UAE-based ADNOC Drilling disclosed a $1.7 billion contract to enable its country to get hold of its unconventional oil and gas resources in May 2024 and revealed the deal with two Texas-headquartered companies, technology giant SLB and its compatriot Patterson-UTI Energy, for the creation of a new company, Turnwell Industries, which would be its unconventional drilling arm.

The newly established drilling player will work for the UAE’s oil and gas heavyweight, Abu Dhabi National Oil Company (ADNOC), to undertake unconventional drilling operations, referring to oil and gas resources that are not produced by traditional extraction methods, as they are trapped in subsurface reservoirs that require additional technology and processes to be set free. These unconventional energy resources include but are not limited to offshore, oil sands, shale oil/gas, tight oil/gas, and gas hydrates.

Upon the finalization of the JV creation, which was inked on September 30, ADNOC Drilling, through its wholly owned subsidiary ADH RSC, will hold a 55% majority equity stake, SLB will have a 30% equity interest, and Patterson-UTI will be the owner of the remaining 15% equity stake. Following Turnwell’s start-up and operational delivery, ADNOC sped up the campaign’s completion timeline and indicated the potential acceleration of phase two with thousands of wells on the cards.

Abdulrahman Abdulla Al Seiari, Chief Executive Officer of ADNOC Drilling, commented: “The acceleration of the well program is a testament to the innovation, collaboration, and pursuit of excellence that will define our joint venture. Turnwell will not only unlock the immense potential of the UAE’s world-class unconventional energy resources but will also set new benchmarks for the global energy industry. We are proud to lead the way in responsibly shaping the future of energy, both in the UAE and beyond.”

Given the need to put activities into higher gear to achieve the timeline, Turnwell has turned to batch drilling, which is portrayed as a method to improve efficiency and reduce costs. Enersol’s Gordon Technologies, a provider of measurement while drilling (MWD) technology, has been roped in to support the delivery of these wells since its MWD technology is said to reduce drilling time, improve well-bore quality, and increase overall drilling efficiency.

Andy Hendricks, Patterson-UTI’s Chief Executive Officer, emphasized: “Patterson-UTI is excited to be a part of Turnwell, which we believe will be a groundbreaking project with multiple years of unconventional drilling and completion activity. We look forward to bringing our established processes and experience for drilling and completing unconventional wells to Abu Dhabi.”

According to ADNOC Drilling’s other Turnwell partner, SLB, the JV will enable the trio to leverage innovations in artificial intelligence (AI), smart drilling design, completions engineering, and production solutions. The tech firm’s scope covers the provision of integrated drilling, stimulation, and completion services, alongside project management, digital capabilities, and subsurface support as part of the venture.

Tarek Rizk, SLB’s president for the Middle East and North Africa region, highlighted: “ UAE’s unconventional energy assets hold a promising future, and we are very much looking forward to elevating their performance in a safe and sustainable way.”

On the other hand, Patterson-UTI explains that it will provide unconventional drilling and completion expertise to Turnwell, along with a limited cash contribution to fund its portion of working capital in exchange for the minority equity interest.

“ADNOC is already a major global player in the development of conventional oil and gas resources, and with the Turnwell joint venture we expect to help achieve industry-leading efficiencies in delivering unconventional oil and gas wells within the Middle East,” underlined Hendricks.

ADNOC is busy with multiple power and decarbonization pies and the latest appetizer to come out of its energy kitchen, before the next main course with yet another project start-up takes the spotlight, is a recently held ceremony to mark the cutting of the first steel for structures destined to be placed at a massive sour gas development off the coast of the United Arab Emirates.

This enormous project is designed to have fully unmanned offshore facilities and operate with zero emissions, thanks to the integration of nuclear and renewable sources, bolstering the firm’s decarbonization efforts. The production from this concession is anticipated to start around 2025.