Abu Dhabi National Oil Company (Adnoc) has announced the five largest framework agreements valued at $1.83 billion (AED 6.72 billion) for directional drilling and logging while drilling (LWD).
These will support Adnoc’s efforts to expand the production capacity of its low-carbon oil and gas resources to help meet the growing demand for energy across the globe.
Adnoc is optimizing its procurement approach to reflect market dynamics, focusing on long-term contracts with an optimal number of suppliers that provide stable and reliable delivery at highly competitive rates.
In line with that policy, the framework agreements were awarded to Al Ghaith Oilfield Supplies and Services Company, Al Mansoori Directional Drilling Services, Schlumberger Middle East SA, Haliburton Worldwide Limited Abu Dhabi and Weatherford Bin Hamoodah Company LLC, following a competitive tender process.
Directional drilling and LWD entails controlling the direction and deviation of a wellbore while drilling to access oil and gas resources and measuring formation properties to enhance production.
The awards cover Adnoc’s onshore and offshore fields and will run for five years with an option for a further two years. Over 75 percent of the award value could flow back into the UAE economy under Adnoc’s In-Country Value programme over the duration of the agreements.
Yaser Saeed Almazrouei, Upstream Executive Director, Adnoc, said: “As Adnoc responds to rising global energy demand, we are responsibly ramping up drilling activities to further unlock Abu Dhabi’s oil and gas resources which have some of the lowest carbon intensity in the world.
“These awards build on our ongoing investments in drilling services and they will deliver substantial in-country value for the nation to support economic growth and diversification.” The framework agreement awards will support Adnoc’s requirement to drill thousands of new wells to expand its production capacity to five million barrels per day (mmbpd) by 2030, enable gas self-sufficiency for the UAE and remain a leading low-cost, low-carbon oil producer.
In the 10 months since November 2021, Adnoc has awarded drilling agreements worth over $11 billion (AED 40.37 billion) to top-tier contractors for wellheads and related components, downhole completion equipment and related services, liner hangers, cementing services, wireline logging and directional drilling.
