Adnoc Drilling secures $1.15bn offshore contract for AI-integrated jack-up rigs
The 15-year contract is the third major one in just over a month, bringing total awards to $3.6 billion, Adnoc Drilling said on Tuesday in a filing to the Abu Dhabi Securities Exchange, where its shares are traded.
The contract will follow existing agreements, bringing accretive rates that generate long-term revenue and attractive returns, the company said.
The rigs are expected to commence operations around the end of the second quarter of this year and will be equipped with artificial intelligence and digitalisation capabilities, helping the company drive operational efficiencies. These rigs have been prepared for operations at the Lamprell shipyard in Sharjah.
The company said this award further de-risks and reaffirms its 2025 and medium-term guidance.
'By integrating AI, automation and digitalisation capabilities, the two new jack-up rigs … will ensure superior efficiency and performance for our client Adnoc Offshore,' said Abdulrahman Al Seiari, Adnoc Drilling chief executive.
'With this contract securing operations until 2040 and beyond, and providing strong, resilient and predictable returns, we are not only reinforcing our role in achieving Adnoc's production capacity milestones but also driving sustainable long-term growth for our shareholders.'
The latest contract is in line with Adnoc Drilling's aim to boost its partnerships and acquisitions in 2025, further to its profit having grown by nearly a quarter to $341 million in the first three months of the year, on the back of growth in its rig fleet and expansion in new markets.
The Adnoc unit is looking for 'potential joint ventures' and partnerships that 'go beyond' Abu Dhabi, Mr Al Seiari told The National earlier this month.
Adnoc Drilling is the largest integrated drilling services company in the Middle East by fleet size. It owned 142 rigs – 95 onshore and 47 offshore – by the end of last year, with three new island rigs on order for 2026. The company expects that to grow to at least 148 rigs by the end of 2026 and 151 by the end of 2028.
In April, Adnoc Drilling was awarded a five-year, $1.63 billion contract for integrated drilling services by Adnoc Offshore, which is expected to support its fleet use, diversify revenue streams and accelerate sustainable and long-term growth and returns.
Adnoc Drilling is also seeking contracts for drilling and oilfield services in Kuwait and Oman.
Last year, the company teamed up with Alpha Dhabi Holding to launch Enersol, a tech-focused venture. It aims to invest $1.5 billion in technology-driven companies in the oilfield services sector by the end of 2025. Its joint venture with Alpha Dhabi, Enersol, has already acquired four companies and has spent $800 million out of a $1.5 billion capital expenditure earmarked through the end of 2025.
The scale of the Adnoc Drilling's offshore fleet ensures reliability and flexibility, enabling the rapid deployment of rigs to meet growing demand while maintaining operational excellence and safety, the company said.
'Adnoc Drilling's advanced fleet of jack-up and island rigs, market leading integrated drilling services and cutting-edge technologies are critical enablers to deliver Adnoc's ambitious strategy. This partnership will help us to sustainably meet the world's growing energy demands and maximise value for shareholders for decades to come,' said Tayba Al Hashemi, chief executive of Adnoc Offshore.
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