Latest news with #ADNOCOnshore
Arabian Post
21 hours ago
- Business
- Arabian Post
ADNOC Drilling Wins Fifth Major Deal in Oilfield Push
ADNOC Drilling has clinched a five-year oilfield services contract from ADNOC Onshore, valued at up to $800 million, with operations scheduled to commence in the third quarter of 2025. Although the contract's full value hinges on the volume of services eventually requested, it marks a significant step in the company's long-term expansion strategy. The announcement extends a streak of high-value awards for ADNOC Drilling, reinforcing its role as a cornerstone in Abu Dhabi's upstream development strategy. The company confirmed that revenue contributions from this latest deal are expected to materialise starting in 2027. Financial targets for 2025 and 2026 remain unaffected, suggesting the project's operational ramp-up will be gradual and tied to on-demand execution. This marks the fifth major award secured by the company in just over two months, showcasing its accelerating momentum in regional and international markets. The new contract follows a $1.63 billion deal for Integrated Drilling Services, an $806 million agreement to operate three island rigs, a $1.15 billion contract for two jack-up rigs, and a $400 million addition to backlog from strategic acquisitions in Oman and Kuwait. Together, these developments signal ADNOC Drilling's aggressive positioning as the energy sector recalibrates for long-term hydrocarbon demand. ADVERTISEMENT ADNOC Drilling's expanded backlog reflects not just increased drilling capacity but a broader transition toward integrated service models. Under the new deal with ADNOC Onshore, the company will provide comprehensive oilfield services, including drilling fluids, wellbore cleanout, casing and tubular running, and pressure pumping. The contractual structure allows for flexible implementation, with service call-offs expected to occur as per field development schedules. The company's statement emphasised that the five-year agreement is part of a broader strategy to maximise hydrocarbon recovery in Abu Dhabi while improving operational efficiency. ADNOC Drilling is expected to deploy both its technical expertise and fleet capacity to service the contract, which will contribute to its growing earnings pipeline by the end of the decade. The award also reaffirms ADNOC Onshore's commitment to increasing upstream activity amid stable oil prices and continued demand forecasts from Asian and European importers. The oilfield services contract plays into a wider plan to enhance production capacity from conventional reservoirs in the emirate, especially as ADNOC aims to raise its output ceiling. The timing of the announcement is strategic. Global oilfield services companies are facing increased competition and margin pressure, while national oil companies across the Gulf are reasserting control over core operations. ADNOC Drilling's expanding suite of contracts suggests a deliberate shift toward insourcing complex drilling and completions activity rather than outsourcing it to international players. The decision also aligns with Abu Dhabi's push to boost the local energy ecosystem by developing home-grown capabilities and reducing dependency on foreign service providers. ADNOC Drilling, a subsidiary of the ADNOC Group, benefits from this policy tilt, offering vertically integrated services tailored for regional geology and operating conditions. Its cumulative contract wins over the past two months now exceed $4.7 billion, pushing the company's order book to record highs. Analysts have indicated that while top-line revenue will see a visible boost in the coming years, the exact financial impact will depend on the pace of mobilisation and utilisation levels across awarded projects. Capital expenditure forecasts remain conservative for 2025 and 2026, reflecting ADNOC Drilling's existing fleet capacity and operational flexibility. However, expectations are mounting that the company will consider new investments or acquisitions as contract execution scales up, particularly to support growth in Kuwait, Oman, and additional Middle Eastern markets. ADNOC Drilling has also signalled that its international growth strategy will continue alongside domestic contract execution. The company is exploring expansion opportunities across the Gulf and potentially further afield in North Africa and Asia, according to industry sources. It is expected to leverage its enhanced balance sheet strength, following a series of capital market transactions and improved cash flows from integrated operations.
Yahoo
2 days ago
- Business
- Yahoo
ADNOC Drilling expands revenue pipeline with new $800m contract
ADNOC Drilling Company has received a new five-year contract worth up to $800m from compatriot company ADNOC Onshore for integrated hydraulic fracturing services for conventional and tight reservoirs. This award, set to begin in the third quarter of 2025, builds on a series of recent major deals, bringing the total value of contracts secured by the company to $4.8bn over the past two months. The contract aligns with Abu Dhabi National Oil Company's (ADNOC's) strategic initiative to accelerate the development of conventional and tight reservoirs across the UAE. It encompasses the design, execution, and evaluation of multistage hydraulic fracturing treatments. These services will be implemented across various assets in Abu Dhabi to enhance oil and gas flow and optimise production. ADNOC Drilling CEO Abdulla Ateya Al Messabi said: 'This significant contract is a powerful endorsement of [our] 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.' Under the contract, the drilling subsidiary plans to utilise advanced technologies, including proprietary fracturing simulation software, to maximise efficiency and performance. Intelligent fluid systems will adjust to reservoir conditions in real-time, while automated pumping units and blending systems will enhance operational safety and efficiency. Established in 1972, ADNOC Drilling serves as the sole drilling provider for ADNOC. In May 2025, the company acquired a 70% stake in SLB's land drilling rigs operations in Kuwait and Oman. The acquisition is expected to boost the company's earnings and cash flow from land rigs in these regions. Separately, tubular solutions provider Vallourec received an order from ADNOC to supply more than 30,000 tonnes of carbon steel tubulars with VAM premium connections. This order is part of a long-term agreement for oil country tubular goods (specialised steel pipes and tubes used for drilling, completing and producing wells) between the two companies and supports ADNOC's goal of reaching a daily production capacity of five million barrels by 2027. Production for this order will occur at Vallourec's facilities in Brazil, China, and Indonesia. "ADNOC Drilling expands revenue pipeline with new $800m contract" was originally created and published by Offshore Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Arabian Business
2 days ago
- Business
- Arabian Business
ADNOC Drilling secures $800m contract to boost UAE oil and gas production
ADNOC Drilling has secured a new contract worth up to $800m from ADNOC Onshore to provide integrated hydraulic fracturing services for conventional and tight reservoirs, the company announced today. The five-year agreement, set to begin in Q3 2025, marks a significant milestone in ADNOC Drilling's ongoing transformation into a fully integrated, technology-enabled energy services provider. The project will deploy advanced equipment, artificial intelligence (AI), and real-time analytics to deliver efficient, safe, and sustainable fracturing solutions across multiple assets in Abu Dhabi. ADNOC Drilling UAE oil boost The scope of work includes multistage hydraulic fracturing design, execution, and evaluation; use of proprietary fracturing simulation software to optimise production; intelligent fluid systems that adapt in real time to reservoir conditions and automated pumping and blending systems to reduce environmental impact and enhance safety Fracturing services are crucial for improving flow rates in oil and gas reservoirs by increasing permeability and unlocking previously hard-to-reach hydrocarbons—an important step in supporting the UAE's long-term energy strategy. Abdulla Ateya Al Messabi, ADNOC Drilling CEO, 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.' This is the drilling giant's fifth major contract in just over two months. Other recent awards include: A $1.63bn contract for Integrated Drilling Services (IDS) A $806m contract for three island rigs A $1.15bn 15-year contract for two jack-up rigs A $400m acquisition backlog across Oman and Kuwait The new award supports 2025 and 2026 revenue guidance, with potential upside from 2027 onward.
Zawya
3 days ago
- Business
- Zawya
ADNOC Drilling awarded five-year contract for oilfield services worth up to $800mln
Award covers fracturing services, building on ADNOC Drilling's success as a provider of integrated energy services Contract offers resilient earnings through its unique OFS offering and secures accretive growth and returns through 2030 and beyond Abu Dhabi, UAE – ADNOC Drilling Company PJSC ('ADNOC Drilling' or the 'Company') (ADX symbol: ADNOCDRILL / ISIN: AEA007301012) announced today the award of 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 set to commence in 3Q 2025, marking another significant milestone in ADNOC Drilling's evolution as a fully integrated technology-enabled energy services company. This award further reinforces ADNOC Drilling'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. Commenting on the award, Abdulla Ateya Al Messabi, ADNOC Drilling CEO, 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.' The contract's scope of work supports ADNOC's strategic goal to accelerate the development of conventional and tight reservoirs across the UAE and includes the design, execution and evaluation of multistage hydraulic fracturing treatments, which will be deployed across a wide range of assets in Abu Dhabi. 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. ADNOC Drilling will deploy advanced technologies throughout the project to maximize efficiency and performance. Proprietary fracturing simulation software will be used to optimize 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 $400m backlog of ADNOC Drilling's signed acquisition in Oman and Kuwait. About ADNOC Drilling ADNOC Drilling, listed on the Abu Dhabi Securities Exchange (ADX symbol 'ADNOCDRILL'; ISIN AEA007301012), is the largest drilling and integrated drilling services (IDS) company in the Middle East by fleet size, owning and operating one of the largest multi-discipline drilling fleets in the world. The Company is a critical link in ADNOC's upstream business, as ADNOC responsibly accelerates its production capacity targets in light of globally increasing demand for energy and enables the UAE's gas growth. ADNOC Drilling incorporated IDS into its portfolio in 2018 and now offers a total solution of start-to-finish wells and associated services that encompass the entire drilling value chain. To find out more, visit: For media inquiries, please contact: For investor inquiries, please contact: ir@
