Adnoc unit awards $1.6b deal for integrated drilling fluid services

Abu Dhabi / WAM 

Adnoc Drilling company on Wednesday awarded a five-year framework agreement valued at up to $1.6 billion for Integrated Drilling Fluids Services (IDFS) to support the expansion of Adnoc’s lower-cost and lower-carbon intensive production capacity, as it continues to respond to growing global demand for energy.

The award covers Adnoc’s onshore and offshore fields and will see an additional $750 million above guidance added to Oilfield Services (OFS) revenue, or $150 million per year.

The contract award brings the total value of awards confirmed by Adnoc Drilling in 2022 to $8.85 billion, of which $1.15 billion has been incremental to the company’s previously disclosed revenue guidance.

Abdulrahman Abdullah Al Seiari, Chief Executive Officer of Adnoc Drilling, commented, “Integrated drilling fluids services are crucial in support of delivering the wells needed to meet Adnoc’s strategy to increase its production capacity and achieve gas self-sufficiency for the UAE. This award, one of several multi-billion dollar long-term contracts that we have secured in 2022, reaffirms our strategic value to Adnoc not just as a drilling provider but as a major OFS player.

“Contracts of this scale help us to ensure that we deliver strong and sustained growth for the UAE and Adnoc Drilling’s shareholders. The addition of $750 million in above-guidance revenue solidifies that growth trajectory.”

Adnoc Drilling is committed to expanding its offering to further capitalise on market opportunities. The company plans to double its OFS revenues by 2025, and the IDFS award will accelerate the company’s ability to achieve and exceed that target.

On October 3, Adnoc Drilling celebrated one year since listing on the Abu Dhabi Securities Exchange. At the time, the initial public offering was the largest listing in the history of the exchange and was 31 times oversubscribed. As of September 30, the company had delivered a total shareholder return of 53.7%.

 

Adnoc, Siemens to jointly develop low-CO2 energy certificates

Abu Dhabi National Oil Company (Adnoc) and Siemens Energy AG on Wednesday announced plans to pilot blockchain technology to certify the carbon intensity of a range of products.

By using smart sensor data gathered from across Adnoc’s operational chain – from the oil well right to the customer – the pilot will show how much CO2 was used to make products such as Murban crude, ammonia, and aviation fuels. This information will be automatically recorded onto a decentralised blockchain ledger.

Such transparency will allow independent regulators to certify the carbon intensity of products. It will also give customers greater confidence and clarity over the carbon footprint of their purchases.

Abdulmunim Saif Al Kindy, Executive Director, People, Technology & Corporate Support Directorate at Adnoc, said: “People typically associate blockchain technology with crypto currencies, but the use of decentralized ledgers has significant implications for the energy industry. This pilot promises to shine a digital spotlight into our manufacturing processes. It will show the world why energy supplied by Adnoc is among the least carbon intensive in the oil and gas industry.”

The low-carbon energy certificate initiative forms part of a broader memorandum of understanding between Adnoc and Siemens Energy. Under the agreement, specialists from both companies will co-create technologies to accelerate decarbonisation and the transition to clean energy. They will collaborate at Adnoc’s state-of-the art innovation facility in Abu Dhabi. Other areas under joint development include electrification and “Power-to-X” technologies to produce green hydrogen and its derivatives, including synthetic CO2-derived products.

Dr. Fahad Al Yafei, Chief Technology Officer, Siemens Energy Middle East, said: “By leveraging our unique knowledge and expertise of certificates of sustainability, Siemens Energy will work with Adnoc to develop solutions for the benefit of the energy industry. Investing in innovation and the co-creation of technologies are vital tools for reducing emissions and meeting Net Zero targets.”

Under an agreement, signed at the Abu Dhabi International Petroleum Exhibition and Conference (Adipec), collaboration between Adnoc and the Siemens Energy Innovation Centre will commence by the end of the fourth quarter of 2022. The agreement was signed by Sophie Hildebrand, Chief Technology Officer, Adnoc and Dr Al Yafei.

The collaboration is the latest in a series of innovation partnerships between Adnoc and leading technological pioneers from around the world.

The Siemens Energy Middle East Innovation Centre is one of four global innovation hubs exploiting the company’s expertise in developing sustainable, reliable and affordable clean energy technologies.