UAE’s ADNOC Signs $920M Deal to Boost AI Program

UAE’s ADNOC Expands AI Program with $920 Million Deal to Revolutionize Well Digitalisation

Abu Dhabi National Oil Company (ADNOC) has awarded a significant $920 million engineering, procurement, and construction contract to enhance its artificial intelligence (AI)-driven well digitalisation program. The project, designed to modernize the monitoring and management of key oilfields in Abu Dhabi, marks a major step toward optimizing operational efficiency, safety, and sustainability in the oil and gas sector.

The Expansion’s Key Details
The project intends to incorporate AI technology into more than 2,000 wells located throughout ADNOC’s well-known oilfields in Bab, Bu Hasa, and South East, Abu Dhabi. Real-time data transmission, automation, and operational control are anticipated to be greatly enhanced by this calculated action, giving ADNOC the ability to remotely monitor and optimize its wells. With a completion date of 2027, the project will be powered by ADNOC’s state-of-the-art private 5G network and innovative AI technologies.

Objectives and Benefits
Abdulmunim Al Kindy, ADNOC’s Executive Director of Upstream, emphasized that the expansion of the well digitalisation program would accelerate automation within the company’s operations. By harnessing industry-leading technologies like AI, ADNOC is committed to boosting its value-added contribution to the UAE economy. Over 80% of the contract’s value will directly benefit the UAE economy, reinforcing ADNOC’s commitment to supporting the country’s economic diversification goals through its In-Country Value (ICV) program.

This project is essential to furthering the UAE’s larger industrial objectives. The UAE Ministry of Industry and Advanced Technology developed the ICV program with the goal of increasing government investment in the country’s economy and promoting sustainability and industrial growth. Through ICV projects, almost Dh48 billion ($13.1 billion) was reinvested in the local economy in 2024 alone.

AI-Driven Digitalisation and Industry Transformation
Artificial intelligence, along with other disruptive technologies such as blockchain, cloud computing, and robotics, is rapidly transforming the global oil and gas industry. A recent study by the World Economic Forum and Accenture suggests that digitalisation could add between $1.6 trillion and $2.5 trillion to the sector over the next decade. ADNOC is already seeing substantial returns from its AI initiatives, generating $500 million in 2023 through the integration of over 30 AI tools across its operations..

ADNOC’s well digitization effort is under underway in a number of onshore fields, such as North East Bab, Qusahwira, and Mender. These fields have sensors, sophisticated digital control valves, and other technology that gathers and sends operating data in real time to ADNOC’s control rooms over its proprietary 5G network. Temperature and pressure are two critical parameters that are included in the data obtained and are necessary for the best well management.

AIQ’s RoboWell solution is one example of an AI-driven technology that makes autonomous well operations possible. These solutions decrease the need for manual intervention and boost overall efficiency by continuously adjusting well operations using the real-time data flow.

Collaboration with Microsoft and Masdar
ADNOC is also working in partnership with Abu Dhabi’s clean energy company Masdar and US technology giant Microsoft to explore further AI advancements and low-carbon initiatives. This collaboration, announced at the 2024 Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC), aims to power Microsoft’s data centers with renewable energy supplied by Masdar, ADNOC’s affiliate.

The initiative is not limited to enhancing operational efficiencies within ADNOC. It also includes ambitious targets such as methane reduction and decarbonisation. The companies are exploring AI-driven decarbonisation projects, including carbon capture technologies, low-carbon ammonia, and hydrogen solutions. ADNOC’s commitment to sustainability is also demonstrated by its target of achieving net-zero emissions by 2045 and near-zero methane emissions by 2030. AI tools have already contributed to reducing ADNOC’s carbon dioxide emissions by one million tonnes from 2022 to 2023.

The UAE’s dedication to leading technical breakthroughs in the global energy sector is demonstrated by the $920 million investment to extend ADNOC’s AI program. A new age of efficiency, safety, and sustainability is about to dawn for oil and gas firms as a result of the integration of AI technologies. ADNOC is positioned as a pioneer in energy innovation and environmental stewardship thanks to its strategic investments in AI and partnerships with foreign entities.