ADNOC Drilling awards $800mln hydraulic fracturing contract
The five-year agreement is set to commence in Q3, marking another significant milestone in Adnoc Drilling's evolution as a fully integrated technology-enabled energy services company.
The scope of work includes the design, execution and evaluation of multistage hydraulic fracturing treatments, which will be deployed across a wide range of assets in Abu Dhabi, said the company in a statement.
Fracturing services for conventional and tight reservoirs are used to enhance the flow of oil or gas through existing natural pathways and optimize production by improving flow rates.
The deal supports Adnoc's strategic goal to accelerate the development of conventional and tight reservoirs across the UAE, said the statement.
This award further reinforces the Abu Dhabi group's leadership in high-tech oilfield services, combining next-generation equipment, artificial intelligence (AI) and real-time intelligence to deliver smarter, safer and more sustainable energy outcomes, it added.
On the contract award, CEO Abdulla Ateya Al Messabi said: "This significant contract is a powerful endorsement of Adnoc Drilling's expanding capabilities and our trusted partnership with Adnoc Onshore. It reflects our ability to deliver high-impact, technologically advanced fracturing services that will help unlock the UAE's energy potential."
"As we continue our transformation, we are proud to support the nation's strategic energy goals and reinforce our position as a leader in integrated drilling and completion solutions," he added.
As per the deal, Adnoc Drilling will deploy advanced technologies throughout the project to maximise efficiency and performance.
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 further reaffirms the 2025 guidance and the 2026 revenue guidance. It also provides further growth and upside in 2027 onwards beyond the current guidance.
This growth will be accretive to the current return on equity and earnings per share. The contract has a ceiling cumulative value of up to $800 million in revenue for Adnoc Drilling, subject to client discretion. Actual revenues will depend on the pace and extent of call-offs.
This marks the fifth contract in just over two months, including a $1.63 billion five-year contract for Integrated Drilling Services (IDS), 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, and a $400 million backlog of Adnoc Drilling's signed acquisition in Oman and Kuwait.-TradeArabia News Service
Copyright 2024 Al Hilal Publishing and Marketing Group Provided by SyndiGate Media Inc. (Syndigate.info).
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