ADNOC Awards $4B Worth of Integrated Drilling Fluids Services


Abu Dhabi National Oil Company (ADNOC) on Tuesday announced the award of three framework agreements valued at $4 billion (AED14.68 billion) for integrated drilling fluids services (IDFS) to support the ongoing expansion of its "lower cost and lower-carbon intensive" production capacity as it responds to growing global demand for energy.

The awards, which ADNOC says are the largest of their kind in the industry, were awarded to ADNOC Drilling Company P.J.S.C (ADNOC Drilling), Schlumberger Middle East S.A. (SLB) and Halliburton Worldwide Limited Abu Dhabi (Halliburton). They cover ADNOC’s onshore and offshore fields and will run for five years with an option for a further two years.

"Over 80% of the award value could flow back into the UAE’s economy under ADNOC’s In-Country Value (ICV) program over the duration of the agreements. Furthermore, the contractors will create job opportunities for UAE Nationals and invest in local manufacturing of equipment and chemicals required for the IDFS," ADNOC said.

According to ADNOC, the framework agreements will enable investment in local manufacturing of equipment and facilities, including in Liquid Mud Plants and a Waste Management Facility, as well as key commodity chemicals, ADNOC said.

ADNOC Drilling’s scope of the framework agreements is valued at up to $1.6 billion (AED5.87 billion). 

Since November 2021, ADNOC has awarded over $16 billion (AED 58.72 billion) in agreements for drilling-related equipment and services, including these awards and other agreements for wellheads, downhole completion equipment, liner hangers, cementing service, wireline logging, directional drilling and logging while drilling. 

"IDFS are necessary to drill the wells that will enable ADNOC expand its oil production capacity and drive gas self-sufficiency for the UAE. Some of these services include provision of products, engineering, technical laboratory support, filtration equipment and solid control equipment," ADNOC said.

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