Abu Dhabi: ADNOC Drilling Company announced today it has been awarded a contract for three island rigs by ADNOC Offshore for an estimated total contract value of US$806 million to support expanding operations at the offshore Zakum development project. These three rigs are in addition to three ordered in July 2024.
According to Emirates News Agency, Abdulrahman Abdulla Al Seiari, ADNOC Drilling CEO, expressed pride in receiving this significant, long-term contract, which marks another major milestone in the company's accelerated growth journey. The next-generation island rigs, equipped with embedded artificial intelligence, signify a leap forward in technology, enhancing safety, efficiency, and performance. This award solidifies ADNOC Drilling's role as a critical enabler of ADNOC's production capacity targets, promising sustainable, high-quality returns for shareholders well into 2038 and beyond.
The contract aligns with existing agreements that generate long-term revenue and attractive returns. The three new island rigs will operate on ADNOC's existing and newly constructed innovative artificial islands, facilitating the drilling and completion of wells.
Tayba Abdul Rahim Al Hashemi, Chief Executive Officer of ADNOC Offshore, emphasized the focus on unlocking maximum value from resources in Abu Dhabi's waters through efficient and innovative methods. The advanced island rigs delivered by ADNOC Drilling are poised to play a vital role in achieving production capacity goals and meeting global energy demand. The collaboration aims to push the boundaries of technology, operational excellence, and partnership to foster sustainable growth.
The new generation of island rigs, expected to gradually join the fleet between 2027 and 2028, will be developed through a strategic collaboration between ADNOC Drilling and Honghua Group (HH). This partnership aims to embed the transformative power of AI, advanced digitalization, and real-time analytics into rig design and operations.
By leveraging real-time condition monitoring, performance optimization, and predictive analytics, the rigs will generate actionable insights that drive higher operational efficiency, improved well delivery times, and enhanced safety. Designed to operate on ADNOC's pioneering artificial islands, home to the world's five longest wells, including a recent record-setting well at 53,000 feet, the rigs will be optimized for extended reach drilling (ERD). Additionally, state-of-the-art walking capabilities will enable seamless movement between well slots without the need for rig dismantling, significantly improving uptime, reducing emissions, and lowering operating costs.
The capital expenditure for acquiring these new island rigs is currently expected to be broadly similar to that of the three island rigs announced in July 2024.
