ADNOC Drilling Secures AED 6.24 Billion Contract
ADNOC Drilling has secured a massive AED 6.24 billion contract with Abu Dhabi National Oil Company (ADNOC).
According to the contract, ADNOC Drilling will provide comprehensive drilling services for unconventional energy exploration.
This landmark agreement marks a significant step in the UAE’s strategic endeavors to diversify its energy portfolio and unlock the vast potential of unconventional resources.
Key Highlights:
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Establishing Turnwell: ADNOC Drilling has established Turnwell, which is a dedicated subsidiary.
It will execute the contract and spearhead the exploration of promising unconventional energy sources. -
Strategic Partnership:
Turnwell has entered into a preliminary agreement to form a strategic partnership with Schlumberger Middle East and Baker Hughes, a global oilfield services company. Finalizing this partnership is subject to definitive agreements and regulatory approvals. -
Unconventional Energy Focus: The contract entails drilling and completing 144 unconventional energy and gas wells.
Abu Dhabi’s unconventional energy potential:
The initial phase of unconventional energy exploration will require the operation of approximately nine land rigs.
Currently, five of them belong to ADNOC Drilling as of December 31, 2023.
ADNOC Drilling will get the contract’s revenue streams in the second half of 2024.
Moreover, the agreement will have a transformative impact on the company’s operations, both technically and financially, in the medium and long term.
Unconventional energy resources are oil and gas deposits trapped in underground formations.
They require advanced technologies and processes to extract.
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Abu Dhabi holds an estimated 220 billion barrels of unconventional oil and 460 trillion cubic feet of unconventional gas.
The above represents promising production opportunities in comparison to countries with abundant unconventional energy resources, like the United States.
This landmark contract marks a pivotal moment in the UAE’s energy landscape.
It is paving the way for a sustainable and diversified energy future powered by both conventional and unconventional resources.
ADNOC Drilling’s expertise and strategic partnerships position the company at the forefront of this transformative endeavor.
It is also contributing to the UAE’s economic growth and global energy leadership.
