ADNOC shells out $320mn on drilling rigs
Abu Dhabi's ADNOC has bought three offshore drilling rigs for a combined cost of $320mn, as it continues expanding its fleet as part of a push by the emirate to expand exploration and production off its shore.
The cost of the rigs will come under the company's three-year guidance for capital expenditure, the national oil company's ADNOC Drilling subsidiary said in a filing on the Abu Dhabi Securities Exchange (ADX) on November 21.
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With the latest acquisitions, ADNOC Drilling will increase the number of offshore jack-up rigs in its fleet to 30. The company's rapid expansion of operations comes after it was listed on the ADX in October last year. It bought an offshore rig in August, and two more in September.
"We continue to execute our bold growth strategy as a key enabler of ADNOC's ambitious production capacity targets," ADNOC Drilling CEO Abdulrahman Al Seiari said in a statement. "The latest acquisition of these premium rigs will be central to our success, and cement our position as one of the world's largest jack-up rig fleet owners, as we strive to significantly boost revenues and shareholder returns over the coming years."
ADNOC Drilling has scored $8.85bn in contracts this year, largely from its parent company, and plans to acquire dozens of more rigs by 2025, supporting Abi Dhabi's goal of ramping up oil production to 5mn barrels/day by 2025, up from 4mn b/d in 2020, while also scaling up gas development, in particular at the giant Hail and Ghasha sour gas deposits.