Adnoc Drilling awarded five-year oilfield services contract worth up to $800m

The National

17 hours ago

Adnoc Drilling, the Middle East's largest drilling company, said it was awarded a contract valued at up to $800 million by Adnoc Onshore for the provision of integrated hydraulic fracturing services for conventional and tight reservoirs.
The five-year agreement is to commence in the third quarter of 2025, the energy services company said in a statement on Monday.
The contract has a ceiling cumulative value of up to $800 million in revenue for Adnoc Drilling. Actual revenue will depend on the pace and extent of call-offs, the company said.
The deal marks the fifth contract for Adnoc Drilling in about two months. It also has a $1.6 billion five-year contract for integrated drilling services, a $806 million contract for three island rigs and a $1.15 billion 15-year contract for two jack-up rigs, all awarded by Adnoc Offshore, as well as a $400 million backlog of Adnoc Drilling's signed acquisition in Oman and Kuwait, the company said.
'This contract is a powerful endorsement of Adnoc Drilling's expanding capabilities,' said chief executive Abdulla Al Messabi. 'It reflects our ability to deliver high-impact, technologically advanced fracturing services that will help unlock the UAE's energy potential.'
Adnoc Drilling owned 142 rigs ­– 95 onshore and 47 offshore – as of the end of last year, with three new island rigs on order for 2026. The company expects to boost its partnerships and acquisitions in 2025 as its profit grew by nearly a quarter in the first three months of the year.
Net profit in the period that ended on March 31 jumped 24 per cent annually to $341 million. Revenue increased by about 32 per cent year-on-year to $1.17 billion.
The Abu Dhabi company signed a joint venture agreement with global oilfield services company SLB in May for its land drilling rigs business in Kuwait and Oman, as it seeks to expand beyond the UAE.
Last year, the company teamed up with Alpha Dhabi Holding to launch Enersol, a technology-focused venture. It aims to invest $1.5 billion in technology-driven companies in the oilfield services sector by the end of 2025. 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 Adnoc Onshore contract's scope of work includes the design, execution and evaluation of multistage hydraulic fracturing treatments, which will be used across a range of assets in Abu Dhabi, the company said.
'Fracturing services for conventional and tight reservoirs are used to enhance the flow of oil or gas through existing natural pathways and optimise production by improving flow rates,' Adnoc Drilling added. 'Proprietary fracturing simulation software will be used to optimise every stage of the operation, increasing flow rates and overall hydrocarbon recovery.
'Intelligent fluid systems will adapt dynamically in real-time to reservoir conditions, improving fracture efficiency and reducing environmental impact. Automated pumping units and blending systems will enhance safety, streamline operations and reduce the need for on-site manpower.'
The economic and financial impact of this contract reaffirms the drilling company's 2025 guidance and 2026 revenue guidance. It also provides further growth and upside in 2027 onwards beyond the current guidance, the statement said. This growth will be accretive to the current return on equity and earnings per share, it added.
Adnoc Drilling was listed on the Abu Dhabi Securities Exchange in 2021, when it was 31 times oversubscribed. Adnoc raised more than $1.1 billion from the listing.
The drilling company raised a further $935 million by selling 880 million additional shares to institutional investors in May last year. The share sale represented 5.5 per cent of Adnoc Drilling's total issued share capital.