ADNOC Drilling Awarded $733 Million For AI-Enhanced Offshore Rigs

ADNOC Drilling Company has announced a contract worth approximately $733 million from ADNOC Offshore. This contract involves three island drilling rigs to support operations at the offshore Zakum field. Abdulrahman Abdulla Al Seiari, CEO of ADNOC Drilling, stated, "ADNOC Drilling is honoured to receive this substantial award, which marks a significant milestone in our company’s accelerated growth journey. These new island rigs will be the most advanced in the world, embracing artificial intelligence, the most transformative technology of our generation."

The new rigs will incorporate cutting-edge technology and automation. They are designed to utilise real-time data on condition, performance, and utilisation to generate actionable insights. This approach aims to enhance rig performance and efficiency while improving safety and reducing well delivery times. The rigs will be built by Honghua Group (HH) in collaboration with ADNOC Drilling.

These rigs will operate on both existing and newly constructed artificial islands at the Zakum field. The design includes capabilities for extended reach drilling (ERD), with some of the world's longest wells being drilled from these islands off Abu Dhabi's coast. The latest well delivered exceeded 52,000 feet.

Tayba Abdul Rahim Al Hashemi, CEO of ADNOC Offshore, commented on the award: "ADNOC Drilling’s technical expertise and enhanced capabilities are key enablers as we safely and sustainably accelerate to meet the world’s growing energy demands. This award will strengthen our partnership in the future as we work together to harness AI and innovation to maximise energy, minimise emissions and unlock significant value for stakeholders."

The rigs are expected to commence operations in 2026. The partnership between ADNOC Drilling and HH aims to leverage AI, digitisation, and advanced technology for these next-generation drilling rigs. They also plan to collaborate with AIQ, an Abu Dhabi-based AI pioneer contributing globally to the energy sector.

Financial Projections and Fleet Expansion

The total capital expenditure for these new island rigs is projected at around $210 million, primarily in 2025. Full-year revenue from these rigs is anticipated by 2027. The guidance for 2024 remains unchanged at $200-250 million for the Island rig segment, which currently operates ten island rigs.

Since its IPO in late 2021, ADNOC Drilling has invested over $2.2 billion in expanding its fleet. By 2026, including these three new rigs and previously announced land rigs for unconventional development phases, their fleet is expected to total at least 148 units.

The innovative design of these rigs includes state-of-the-art capabilities such as walking between wells without dismantling them. This feature significantly boosts efficiency and safety while lowering costs and emissions.

The long-term nature of this contract ensures guaranteed returns under existing agreements. The collaboration aims to drive efficiency and safety while delivering exceptional value for ADNOC Offshore.

This strategic move aligns with ADNOC's broader goals of meeting global energy demands sustainably while minimising environmental impact through advanced technological integration.

With inputs from WAM