ADNOC hires two jack-up rigs for nearly $1 bln to further unlock UAE’s offshore resources

UAE’s energy giant Abu Dhabi National Oil Company (ADNOC) has awarded a contract worth $980 million (AED3.6 billion) to ADNOC Drilling to hire two jack-up offshore rigs and associated manpower and equipment.

The contract, awarded by ADNOC Offshore, will support the expansion of ADNOC’s production capacity as it responds to the growing global demand for lower carbon-intensity oil and gas, the energy giant said in a statement on Thursday.

ADNOC Drilling is the largest national drilling company in the Middle East by rig fleet size and this award will leverage the company’s expertise and rig fleet to further unlock the UAE’s offshore energy resources.

It comes only days after the award of a contract worth $1.53 billion to ADNOC Drilling for the provision of 12 jack-up rigs and 2 island rigs and the associated Integrated Drilling Services (IDS).

This followed two awards in August worth $3.43 billion to hire eight jack-up rigs.

The latest award brings the total value of awards from ADNOC Offshore to ADNOC Drilling in 2022 to $5.95 billion to maximize the value from Abu Dhabi’s offshore oil and gas resources.

Yaser Saeed Almazrouei, ADNOC Upstream Executive Director said: “This award for the hire of jack-up rigs supports our ongoing efforts to responsibly unlock our lower carbon intensity oil and gas resources, alongside our strategic international partners, and contribute to global energy security. ADNOC Drilling’s world-class capabilities continues to be a key enabler of these efforts.”

It is also worth reminding that the drilling contractor has been growing its fleet further lately. The latest two deals, announced in late August and September, will see the company add a total of three premium jack-up rigs to its fleet.