ADNOC Offshore has awarded a $412m five-year contract to ADNOC Drilling for the provision of integrated drilling services (IDS) for the Upper Zakum field offshore UAE.
The Upper Zakum is said to the largest producing field in ADNOC’s offshore portfolio and world’s second-largest offshore oil field.
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Work under the contract is expected to commence in the second quarter of 2023.
ADNOC Offshore said in a statement: “The application of the services provided by ADNOC Drilling will add to the efficiency of production at the project, deliver significant cost savings, and contribute to ADNOC’s plans to responsibly accelerate production capacity growth as global demand for energy continues to increase.”
As part of 2030 smart growth strategy, ADNOC aims to boost the production capacity from the Upper Zakum field to one million barrels per day (mbpd) by 2024.
ADNOC Drilling CEO Abdulrahman Abdullah Al Seiari said: “This contract award further demonstrates the delivery of our strategic objective to expand our Oilfield Services (OFS) business as we continue to work towards our goal of further doubling OFS revenues by 2025.
“This contract, alone, will add some 20% to our annual revenue compared with 2022. Our comprehensive market-leading drilling and completion services offering improves operational performance and efficiency, delivering considerable cost savings and reductions in well delivery times for our customers.”
ADNOC announced $763.7m investment in July 2021 to deploy integrated rigless services at the six artificial islands of the Upper Zakum and Satah Al Razboot (SARB) fields to boost production capacity to 5mbpd by the end of this decade.
Last year, ADNOC Drilling received $1.53bn contract from ADNOC to support the expansion of its offshore operations.
