ADNOC Drilling Secures $1.15 Billion Contract For Two Advanced Jack-Up Rigs To Boost Offshore Operations

ADNOC Drilling Company has secured a significant 15-year contract valued at $1.15 billion for two jack-up rigs from ADNOC Offshore. This agreement supports the expansion of offshore operations and aligns with existing contracts, promising long-term revenue and appealing returns.

Abdulrahman Abdulla Al Seiari, CEO of ADNOC Drilling, stated, "This new contract is a clear vote of confidence in ADNOC Drilling’s technical leadership, operational excellence and long-term value creation. By integrating artificial intelligence (AI), automation and digitalisation capabilities, the two new jack-up rigs, our newest and most advanced jack-up rigs, will ensure superior efficiency and performance for our client ADNOC Offshore."

The contract guarantees operations until 2040 and beyond, offering stable returns. It strengthens ADNOC's production goals while promoting sustainable growth for shareholders. ADNOC Drilling's fleet includes 47 offshore rigs, making it one of the largest globally. This scale provides reliability and flexibility to meet increasing demand while maintaining safety standards.

Tayba Abdul Rahim Al Hashemi, CEO of ADNOC Offshore, remarked on recent developments: "In the past month, ADNOC Offshore has awarded long-term contracts worth c. $3.6 billion to ADNOC Drilling to safely accelerate our production capacity growth plans. ADNOC Drilling’s advanced fleet of jack-up and island rigs, market leading integrated drilling services and cutting-edge technologies are critical enablers to deliver ADNOC’s ambitious strategy. This partnership will help us to sustainably meet the world’s growing energy demands and maximise value for shareholders for decades to come."

The latest generation jack-up rigs have been prepared at Lamprell shipyard in Sharjah. They reflect the company's dedication to delivering high-quality solutions while enhancing local partnerships and innovation within the UAE's economy.

These rigs will utilise advanced digitalisation tools like real-time data analytics and AI. This technology deployment aims to boost safety, efficiency, asset value, and operational uptime across the fleet.

Long-Term Financial Stability

ADNOC Drilling's business model showcases resilience through these long-term contracts that promise attractive returns. Multi-year engagements provide a stable foundation for recurring revenue growth, supporting sustainable shareholder returns.

The rigs are set to begin operations by late Q2 2025, generating revenue from the second half of that year onwards. This award further stabilises ADNOC Drilling's 2025 outlook and medium-term guidance.

With inputs from WAM