AI-enhanced rig trio boosts UAE giant’s drilling fleet with $733 million oil field contract

UAE-Based ADNOC Drilling Expands Fleet with $733 Million Contract for Three Newbuild Rigs

ADNOC Drilling Secures Major Deal to Enhance Offshore Operations with New High-Tech Rigs

ADNOC Drilling, a prominent UAE drilling service provider, has secured a significant contract with ADNOC Offshore, valued at approximately $733 million. This deal marks a major expansion for ADNOC Drilling, allowing it to add three new, state-of-the-art drilling rigs to its fleet, which will now total 148 rigs. The new rigs are set to operate at the Zakum oil field, situated about 84 kilometers northwest of Abu Dhabi and 50 kilometers from Zirku Island, a key site in the UAE’s oil industry.

The contract involves deploying the new rigs on existing and newly constructed artificial islands at the Zakum field, enhancing ADNOC Drilling’s ability to support and expand operations in this crucial area. This expansion aligns with ADNOC Drilling’s goals of improving operational efficiency and sustainability in the UAE’s energy sector.

Tayba Abdul Rahim Al Hashemi, CEO of ADNOC Offshore, emphasized the importance of ADNOC Drilling’s technical expertise and advanced capabilities in meeting global energy demands. The partnership aims to leverage innovation and AI to maximize energy efficiency and reduce emissions. This collaboration will reinforce the strong relationship between ADNOC Drilling and ADNOC Offshore, paving the way for future projects.

The three new rigs will be constructed in collaboration with Honghua Group (HH), incorporating cutting-edge technology and automation. These next-generation rigs will utilize real-time data to enhance performance and efficiency, setting new industry standards. They are designed for extended reach drilling (ERD) and will have the capability to walk between wells, improving safety, reducing costs, and minimizing environmental impact.

The rigs are expected to be delivered by 2026, with a total capital expenditure of approximately $210 million, concentrated in 2025. Full-year revenue from the new rigs is projected to begin in 2027. ADNOC Drilling’s guidance for the island rig segment for 2024 remains at $200-250 million, reflecting the ongoing commitment to fleet expansion.

With this acquisition, ADNOC Drilling’s fleet will reach at least 148 rigs by 2026, including three land units for unconventional development. The company has invested over $2.2 billion in its drilling fleet since late 2021, highlighting its dedication to maintaining industry leadership.

ADNOC Offshore, managing nine major oil fields and significant infrastructure such as terminals at Das Island and Zirku Island, continues to drive large-scale development projects. The recent contract and ongoing projects underscore the UAE’s commitment to advancing technology and sustainability in the oil and gas sector.