ADNOC Drilling Company PJSC on Wednesday confirmed the award of contracts worth $2 billion to support the world’s largest offshore sour gas development, ADNOC’s Ghasha offshore mega gas project, offshore Abu Dhabi.
The contracts are valued at $1.3 billion for Integrated Drilling Services (IDS), and $700 million for the provision of four island drilling units. Each contract has a fixed term of 10 years.
Production from the Ghasha project is expected to start around 2025, ramping up to produce more than 1.5 billion standard cubic feet per day before the end of the decade, as ADNOC’s aims to meet growing domestic and international demand for gas, as well as enablie gas self-sufficiency for the UAE.
Up to 46 wells can be drilled from a single artificial island, significantly minimizing the project’s environmental footprint, according to ADNOC Drilling, ADNOC's sole drilling services provider.
Abdulrahman Abdullah Al Seiari, Chief Executive Officer of ADNOC Drilling, said, “This world-class award is testament to ADNOC Drilling’s position as the Middle East’s largest regional drilling company and the regional leader in Oilfield Services. It will ensure we continuously deliver strong and sustained growth while further driving shareholder value. Our status as a key enabler of ADNOC’s production capacity expansion targets offers investors a solid opportunity for sustained and predictable revenue growth, coupled with market leading cash flows and profitability margins, resulting in a progressive dividend policy.
“The $1.3 billion IDS contract also highlights the growing impact of our innovative strategy for offering our customers start-to-finish wells and fortifies our differentiated position as a world leader in drilling and completion services.”
The Ghasha award comes as ADNOC Drilling plans to double its delivery of IDS wells in 2022, and double its IDS-capable fleet by 2024, which will support the doubling of OFS revenues by 2025.