Adnoc continues to drive upstream growth as it awards $658 million deals

Abu Dhabi National Oil Company (Adnoc) on Thursday announced the award of framework agreements valued at $658 million (Dh2.4 billion) for cementing services as it continues to invest to enable drilling growth and expand its crude oil production capacity.

The framework agreements were awarded to Haliburton Worldwide Limited Abu Dhabi (Halliburton), Baker Middle East (Baker), Emirates Western Oil Well Drilling & Maintenance Co. (Emirates Western), NESR Energy Services (NESR) and Emjel Oil Field Services (Emjel), following a competitive tender process.

These awards cover Adnoc’s onshore and offshore fields and will run for five years with an option for a further two years. Over 65 per cent of the award value could flow back into the UAE economy under Adnoc’s in-country value program over the duration of the agreements. Furthermore, skilled employment opportunities will be created for UAE Nationals by the successful companies who will also work to identify local manufacturing opportunities.

Yaser Saeed Almazrouei, Adnoc Upstream executive director, said the awards for cementing services will support the ongoing expansion of Adnoc’s drilling activities as “we grow our production capacity, strengthening our position as a reliable global supplier of some of the world’s most carbon efficient barrels”.

“In line with the UAE Leadership’s wise directives and as part of our strategy, we are prioritizing in-country value and these awards will enable careers for UAE Nationals and new opportunities for the private sector, directly supporting the objectives of the UAE’s Principles of the 50,” he said.

The smart nature of the awards will enable Adnoc to realise hundreds of millions of dollars in cost savings. As an integral part of its 2030 strategy, Adnoc is optimising its procurement strategy to reflect market dynamics, focusing on long-term contracts with an optimized number of suppliers that provide stable and reliable delivery at highly competitive rates.

The award for cementing services takes the total value of Adnoc’s drilling-related framework agreements and procurement awards since November 2021 to over $8.5 billion (Dh31.2 billion). These awards will support Adnoc’s requirement to drill thousands of new wells as it increases its crude oil production capacity to five million barrels per day (mmbpd) by 2030 and drives gas self-sufficiency for the UAE.

— business@khaleejtimes.com