ADNOC Drilling has reached a total of $8.85 billion (AED32.5 billion) worth of contracts awarded this year when it signed a five-year framework agreement valued at up to $1.6 billion (AED5.88 billion) for Integrated Drilling Fluids Services (IDFS) to support the expansion of its lower-cost and lower-carbon intensive production capacity.
Of the total contracts awarded, $1.15 billion has been in excess of the company’s previously disclosed revenue guidance.
As it continues to respond to growing global demand for energy, the award covers ADNOC’s onshore and offshore fields and will see an additional $750 million above guidance added to Oil Field Services (OFS) revenue, or $150 million per year.
Abdulrahman Abdullah Al Seiari, Chief Executive Officer of ADNOC Drilling, commented: “Integrated Drilling Fluids Services are crucial in support of delivering the wells needed to meet ADNOC’s strategy to increase its production capacity and achieve gas self-sufficiency for the UAE.
“This award, one of several multi-billion dollar long-term contracts that we have secured in 2022, reaffirms our strategic value to ADNOC not just as a drilling provider, but as a major OFS player.
“Contracts of this scale help us to ensure that we deliver strong and sustained growth for the UAE and ADNOC Drilling’s shareholders. The addition of $750 million in above-guidance revenue solidifies that growth trajectory.”
ADNOC Drilling is committed to expanding its offering to further capitalise on market opportunities. It plans to double its OFS revenues by 2025, and the IDFS award will accelerate the company’s ability to achieve and exceed that target.
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