ADNOC Drilling Company has been awarded a $733 million contract by ADNOC Offshore for drilling three island rigs at Abu Dhabi's offshore Zakum field, bringing its total rig count to 148 by 2026, a statement showed on Wednesday.
The rigs, expected to feature advanced technology and automation, will be developed through a partnership between ADNOC Drilling and Hong Kong's Honghua Group (HH), with the latter responsible for their construction.
This partnership will leverage artificial intelligence (AI), digitization, and advanced technology to innovate the design and operation of the next-generation drilling rigs, ADNOC Drilling said.
Our partnership with HH will amplify the creativity and ingenuity of our industry as we design and build these rigs of the future that drive efficiency and safety and deliver exceptional value for our customer ADNOC Offshore," said Abdulrahman Abdulla Al Seiari, CEO of ADNOC Drilling, in the statement.
The UAE-based company and HH plan to collaborate with AIQ, a pioneer in artificial intelligence (AI) technology, contributing to the global energy sector.
Delivery and operational commencement are scheduled for 2026.
The contract award by ADNOC Offshore will follow existing agreements, "ensuring revenue underpinned by long-term duration and guaranteed returns," said the statement.
The three new island rigs will operate on existing and newly constructed artificial islands at the offshore Zakum field, facilitating the drilling and completion of wells, it added.
ADNOC Drilling said that the rig operating systems' design will leverage real-time condition, performance, and utilization data to generate actionable insights to enhance rig performance, improve efficiency, and ultimately boost safety and reduce well delivery times.
Drilling operations on ADNOC’s innovative artificial islands support extended-reach drilling (ERD). Located off the coast of Abu Dhabi, these islands have enabled the delivery of the world's top five longest wells, including one that exceeds 52,000 feet in length, noted the company.
Further, the rigs will feature advanced walking capabilities between wells, eliminating the need for dismantling for relocation and cutting costs and emissions.
ADNOC Drilling expects a total capital expenditure of approximately $210 million for the purchase of the new island rigs, mostly concentrated in 2025. The first full-year revenue from these rigs is anticipated in 2027.
Despite winning the mega contract, ADNOC Drilling stated that the full-year 2024 forecast for the Island rig segment, which currently operates 10 island rigs, remains unchanged at $200-250 million.
Since the fourth quarter of 2021, ADNOC Drilling has invested more than $2.2 billion in building one of the largest integrated drilling fleets in the world.
