In response to the expanding global demand for energy, Abu Dhabi National Oil Company (ADNOC) announced the awarding of three framework agreements totaling $4 billion for integrated drilling fluids services (IDFS). This will support the company’s ongoing expansion of its lower cost and lower carbon intensive production capacity.
ADNOC Drilling Company, Schlumberger Middle East, and Halliburton Worldwide Limited Abu Dhabi received the largest awards of their kind in the sector. They will last for five years with an option for an additional two years, covering both onshore and offshore fields for ADNOC.
Under ADNOC’s In-Country Value (ICV) program, during the course of the agreements, over 80% of the award value might be reinvested in the UAE’s economy.
Yaser Saeed Almazrouei, ADNOC Upstream Executive Director, said: “These record framework agreements for integrated drilling fluids services continue ADNOC’s significant investment in drilling-related services to enable the expansion of our production capacity and responsibly unlock the UAE’s leading low-cost, lower-carbon intensity hydrocarbons. In line with the wise directives of the UAE’s leadership, we are prioritizing in-country value as we respond to growing global demand for energy and these agreements will create skilled job opportunities for UAE Nationals in the private sector, drive domestic manufacturing and support the UAE’s industrial growth.”
The framework agreements will make it possible to invest in critical commodity chemicals as well as local manufacturing of machinery and facilities, such as liquid mud plants and waste management facilities.
The value of the framework agreements for ADNOC Drilling might reach $1.6 billion (AED5.87 billion).
The wells that will allow ADNOC to increase its oil production capacity and promote gas self-sufficiency for the UAE must be drilled using IDFS.