U.S. upstream players have been awarded by the Abu Dhabi National Oil Company (Adnoc) with drilling contracts; the combined worth of the contracts given to U.S. companies is more than the $500 million dollars.
Firstly, the companies awarded were Halliburton and Schlumberger; contracts come as Adnoc will invest up to $ $763.7 million (AED2.8 billion) in integrated rigless services across six of its artificial islands in the Upper Zakum; and Satah Al Razboot (SARB) fields, to support its production capacity expansion to 5 million barrels per day by 2030.
Secondly, the third company awarded with a drilling contract was Adnoc Drilling. Subsidiary of Adnoc, Adnoc Offshore awarded the three contracts after a competitive and long process. Schlumberger’s share of the award is $ 381.18 million; while Adnoc Drilling has a $228,71 million share and Halliburton a $153,87 million. Combined, the two American companies secured more than $500 share in the project.
Thirdly, nevertheless, around 80% of the total award value will flow back into the United Arab Emirates’ (UAE) economy. It will do so under ADNOC’s In-Country Value (ICV) program; over the 5-year duration of the contracts. Consequently, the awards will reinforce the company’s commitment to create economic value that stays in the country.
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Moreover, the contracts include coiled tubing services with thru-tubing downhole tools; also, stimulation services, including equipment and chemicals/fluid systems. They also include surface well testing services, wireline; and also, production logging services and tools; as well as saturation monitoring, and well integrity.
In addition, about the relevance of the contracts, Yaser Saeed Almazrouei, Adnoc’s Upstream executive director, said. “These important awards for integrated rigless services will drive efficiencies of drilling and related services; while optimizing costs in our Offshore operations as we ramp up our drilling activities to increase our production capacity.”
He also remarked. “The contractors bring best-in-class expertise and technologies with a proven track record in the industry. On the other hand, ADNOC Drilling’s scope reflects its expanded service profile; following its successful transformation into a fully integrated drilling services (IDS) company.”
Finally, the six artificial islands that the contracts cover are Asseifiya, Ettouk; also, Al Ghallan, and Umm Al Anbar in the Upper Zakum field; and Al Qatia and Bu Sikeen in the SARB field. The news comes just as the United Arab Emirates have the greenlight to uplift production after OPEC’s agreement this Sunday.