ADNOC has dished out a unified drilling contract worth $764 million to Schlumberger and Halliburton, with Schlumberger and Halliburton landing sizable shares.

The offshore service work will be carried out across six artificial islands in Abu Dhabi in the upper Zakum and Sarah Al Razboot (SARB) oil fields, supporting plans to expand production to huge 5 million barrels per day by 2030.

Schlumberger has been awarded a $381.1 million share of the contract from ADNOC, while Halliburton is getting a deal worth $153.9 million.

Meanwhile ADNOC drilling picks up the remaining $228.7 million, which the award unifying several smaller contracts, which the operator said would enable cost savings and a single point of responsibility.

What are 80% of their award value of flow back into the UAE economy under ADNOC’s in-country value (ICV) programme.

ADNOC Drilling Speaks

Yaser Saeed Al Mazrouei, ADNOC Drilling’s CEO, said: “This award underscores the strength of our long-standing partnership with Schlumberger and Halliburton, and our position as the UAE’s leading drilling services provider.”

"These important awards for integrated rigless services will drive efficiencies of drilling and related services and optimize cost in our offshore operations as we ramp up our drilling activities to increase our production capacity and enable gas self-sufficiency for the UAE"

"The contractors, bring the best in class expertise and tech technologies with a proven track record in the industry and ADNOC drillings scope reflects its expanded service profile, following its successful transformation into a fully integrated drilling service (IDS) company, enable needs to offer its clients start to finish Well drilling, and construction services."

"Schlumberger being the biggest benefactor of this contract with 80% offer. It has already subcontract some of its percentage to Valaris Limited, Noble corporation, DeepRidge Energy, Nabors industries and Baker Hughes. This plan is to meet up with the project timing and effective executions. "

"Importantly, the high in country value generated from the awards will stimulate new business opportunities for the private sector and support the UAE's post-Covid economic growth "

The awards cover the six artificial islands of Asseifiya, Ettouk, Al Ghallan, and Umm Al Anbar in the Upper Zakum and Al Qatia and Bu Siken in the SARB oil fields.

ADNOC said use of artificial islands provide environmental benefits, particularly in shallow water with use of land, drilling rigs rather than offshore jack-up rigs

Schlumberger, ADNOC and Halliburton will cover a range of services, including coiled tubing, equipment, simulation services, and well integrity.

In 2018, Baker Hughes acquired a 5% stake in ADNOC drilling which has since complete completed over 180 integrated drilling services Wells, which it said has moved more than $210 million through efficiency improvements