ADNOC Drilling secures $2bn offshore jack-up contracts

ADNOC Drilling, a subsidiary of the Abu Dhabi National Oil Company (ADNOC), on June 23 announced the award of five 10-year contracts worth approximately $2bn. These contracts are intended to support the growing drilling operations of ADNOC Offshore.

Under these contracts, ADNOC Drilling will provide five jack-up rigs, along with all the necessary manpower and equipment, to support drilling operations across five fields in ADNOC's offshore portfolio.

The rigs will be progressively deployed starting from the end of 2023, and “significant” revenue is expected to be generated in 2024, with the first full-year revenue contribution anticipated in 2025, the company said. The revenue associated with these contracts has been included in the company's full-year 2023 and medium-term guidance.

Each of the five rigs will be equipped with a battery energy storage system to increase efficiency and reduce emissions. The hybrid power technology system stores energy in its batteries to use when there is a need for continuous power or to provide instant extra power when there is an increase in demand.

The $2bn contract award follows more than $11.5bn in long-term contracts announced since the beginning of 2022.