Latest news with #IntegratedDrillingServices
Arabian Post
02-07-2025
- Business
- Arabian Post
ADNOC Drilling Wins Fifth Major Deal in Oilfield Push
ADNOC Drilling has clinched a five-year oilfield services contract from ADNOC Onshore, valued at up to $800 million, with operations scheduled to commence in the third quarter of 2025. Although the contract's full value hinges on the volume of services eventually requested, it marks a significant step in the company's long-term expansion strategy. The announcement extends a streak of high-value awards for ADNOC Drilling, reinforcing its role as a cornerstone in Abu Dhabi's upstream development strategy. The company confirmed that revenue contributions from this latest deal are expected to materialise starting in 2027. Financial targets for 2025 and 2026 remain unaffected, suggesting the project's operational ramp-up will be gradual and tied to on-demand execution. This marks the fifth major award secured by the company in just over two months, showcasing its accelerating momentum in regional and international markets. The new contract follows a $1.63 billion deal for Integrated Drilling Services, an $806 million agreement to operate three island rigs, a $1.15 billion contract for two jack-up rigs, and a $400 million addition to backlog from strategic acquisitions in Oman and Kuwait. Together, these developments signal ADNOC Drilling's aggressive positioning as the energy sector recalibrates for long-term hydrocarbon demand. ADVERTISEMENT ADNOC Drilling's expanded backlog reflects not just increased drilling capacity but a broader transition toward integrated service models. Under the new deal with ADNOC Onshore, the company will provide comprehensive oilfield services, including drilling fluids, wellbore cleanout, casing and tubular running, and pressure pumping. The contractual structure allows for flexible implementation, with service call-offs expected to occur as per field development schedules. The company's statement emphasised that the five-year agreement is part of a broader strategy to maximise hydrocarbon recovery in Abu Dhabi while improving operational efficiency. ADNOC Drilling is expected to deploy both its technical expertise and fleet capacity to service the contract, which will contribute to its growing earnings pipeline by the end of the decade. The award also reaffirms ADNOC Onshore's commitment to increasing upstream activity amid stable oil prices and continued demand forecasts from Asian and European importers. The oilfield services contract plays into a wider plan to enhance production capacity from conventional reservoirs in the emirate, especially as ADNOC aims to raise its output ceiling. The timing of the announcement is strategic. Global oilfield services companies are facing increased competition and margin pressure, while national oil companies across the Gulf are reasserting control over core operations. ADNOC Drilling's expanding suite of contracts suggests a deliberate shift toward insourcing complex drilling and completions activity rather than outsourcing it to international players. The decision also aligns with Abu Dhabi's push to boost the local energy ecosystem by developing home-grown capabilities and reducing dependency on foreign service providers. ADNOC Drilling, a subsidiary of the ADNOC Group, benefits from this policy tilt, offering vertically integrated services tailored for regional geology and operating conditions. Its cumulative contract wins over the past two months now exceed $4.7 billion, pushing the company's order book to record highs. Analysts have indicated that while top-line revenue will see a visible boost in the coming years, the exact financial impact will depend on the pace of mobilisation and utilisation levels across awarded projects. Capital expenditure forecasts remain conservative for 2025 and 2026, reflecting ADNOC Drilling's existing fleet capacity and operational flexibility. However, expectations are mounting that the company will consider new investments or acquisitions as contract execution scales up, particularly to support growth in Kuwait, Oman, and additional Middle Eastern markets. ADNOC Drilling has also signalled that its international growth strategy will continue alongside domestic contract execution. The company is exploring expansion opportunities across the Gulf and potentially further afield in North Africa and Asia, according to industry sources. It is expected to leverage its enhanced balance sheet strength, following a series of capital market transactions and improved cash flows from integrated operations.
Al Etihad
17-04-2025
- Business
- Al Etihad
ADNOC Drilling awarded $1.63 billion, five-year Integrated Drilling Services contract
17 Apr 2025 11:53 ABU DHABI (WAM) ADNOC Drilling Company announced Thursday that it has received a letter of award for a $1.63 billion, five-year contract for Integrated Drilling Services (IDS) from ADNOC landmark award reinforces ADNOC Drilling's unique position within ADNOC Group and as the region's leading provider of advanced, integrated energy services, reflects the strength of its strategy to expand its fleet, service offerings, and Drilling CEO, Abdulrahman Abdulla Al Seiari, said, 'We are immensely proud to secure this considerable award, which not only validates our strategic direction but also demonstrates the confidence ADNOC Offshore places in our capabilities. Our IDS offering delivers superior value and innovation, enabling us to play a pivotal role in reshaping the future of energy services in the region. This milestone underscores our commitment to operational excellence, and positions ADNOC Drilling as the partner of choice in an increasingly dynamic and complex energy landscape.''This five-year award is a strong reflection of ADNOC Drilling's long-term contracting model, which provides revenue visibility and stability over the contract period. It aligns with our disciplined approach to building a resilient business foundation, capable of generating consistent cash flow and supporting sustainable shareholder returns through the cycle.'The contract covers the provision of directional drilling, drilling fluids, cementing, wireline logging, and tubular running services. The award incorporates advanced engineering and technical support for the effective delivery of extended reach and maximum reservoir wells Offshore CEO, Tayba Al Hashemi, said, 'ADNOC Drilling is a key enabler on our accelerated journey to responsibly meet the world's growing energy needs. This contract gives us access to their cutting-edge capabilities and market-leading end-to-end services, which will maximise efficiency and generate significant value for our shareholders and the UAE.'This award is a clear endorsement of ADNOC Drilling's continued commitment to operational excellence, innovation, and the adoption of artificial technology (AI) and advanced technologies, underlining its ability to deliver end-to-end solutions that optimise performance while unlocking significant value for its contract supports the growing Oilfield Services segment, and its economic impact is already included in the current 2025 and 2026 guidance, underpinning the visibility of ADNOC Drilling's business model and in support for the Company's financial the demand for advanced, high-performance energy solutions increases, the growth of ADNOC Drilling's IDS portfolio is a cornerstone of the Company's strategy – enhancing fleet utilisation, diversifying revenue streams, and accelerating sustainable and long-term growth and IDS business brings a relatively new and fast-growing revenue stream to ADNOC Drilling, significantly enhancing business resilience and future-proofing the company through the cycles. With its leading market position in IDS in the UAE, ADNOC Drilling is uniquely positioned to capture further growth and deepen its leadership in this high-potential Drilling is leading the transformation of the energy services sector by adopting AI, integrating advanced technologies with deep industry knowledge and expertise with a relentless focus on operational efficiency. Its joint venture Enersol, a pioneering AI-centric investment platform, is at the forefront of this new energy technology era as it builds a scalable, future-facing AI and advanced technology ecosystem that is uniquely positioned to empower its portfolio of companies to lead in innovation, maximise synergies, and ultimately generate added value.
Trade Arabia
17-04-2025
- Business
- Trade Arabia
Adnoc Drilling secures $1.63bn contract
Adnoc Drilling has secured a $1.63 billion five-year contract for Integrated Drilling Services from Adnoc Offshore, solidifying its position as the leading provider of advanced, integrated energy services in the region and demonstrating its strategy to expand its fleet and service offerings. Abdulrahman Abdulla Al Seiari, Adnoc Drilling CEO, said: 'We are immensely proud to secure this considerable award, which not only validates our strategic direction but also demonstrates the confidence Adnoc Offshore places in our capabilities. Our IDS offering delivers superior value and innovation, enabling us to play a pivotal role in reshaping the future of energy services in the region. This milestone underscores our commitment to operational excellence, and positions Adnoc Drilling as the partner of choice in an increasingly dynamic and complex energy landscape. 'This five-year award is a strong reflection of Adnoc Drilling's long-term contracting model, which provides revenue visibility and stability over the contract period. It aligns with our disciplined approach to building a resilient business foundation, capable of generating consistent cash flow and supporting sustainable shareholder returns through the cycle.' The contract covers the provision of directional drilling, drilling fluids, cementing, wireline logging and tubular running services. The award incorporates advanced engineering and technical support for the effective delivery of extended reach and maximum reservoir wells offshore. Tayba Al Hashemi, Adnoc Offshore CEO, said: 'Adnoc Drilling is a key enabler on our accelerated journey to responsibly meet the world's growing energy needs. This contract gives us access to their cutting-edge capabilities and market-leading end-to-end services, which will maximise efficiency and generate significant value for our shareholders and the UAE.' -TradeArabia News Service
Zawya
17-04-2025
- Business
- Zawya
ADNOC Drilling wins $1.63bln offshore Integrated Drilling Services contract
ADNOC Drilling announced on Wednesday that it has received a letter of award from ADNOC Offshore for a $1.63 billion contract to deliver Integrated Drilling Services (IDS) over a five-year period. The scope of the contract includes directional drilling, drilling fluids, cementing, wireline logging, and tubular running services. It also covers engineering and technical support for the delivery of extended reach and maximum reservoir contact wells offshore. 'This five-year award is a strong reflection of ADNOC Drilling's long-term contracting model, which provides revenue visibility and stability over the contract period,' said Abdulrahman Abdulla Al Seiari, CEO of ADNOC Drilling. Tayba Al Hashemi, CEO of ADNOC Offshore, said: 'This contract gives us access to their cutting-edge capabilities and market-leading end-to-end services, which will maximise efficiency and generate significant value for our shareholders and the UAE.' ADNOC Drilling said the award supports the growth of its Oilfield Services segment and that the associated economic impact is already accounted for in its 2025 and 2026 financial guidance. (Writing by SA Kader; Editing by Anoop Menon)
