ADNOC Drilling Company, a subsidiary of UAE’s ADNOC, has been granted a AED6.24 billion ($1.7 billion) contract by ADNOC to provide drilling and related services for the extraction of unconventional energy resources. Under the contract, Turnwell will be responsible for delivering 144 unconventional oil and gas wells.
To fulfill the requirements of the contract and explore future prospects in unconventional resources, ADNOC Drilling has established a new entity called Turnwell Industries LLC OPC.
Read more: ADNOC Drilling shareholders set to receive $358 million as H2-2023 dividend
Strategic partnership with Schlumberger and Patterson-UTI
ADNOC Drilling has signed a term sheet to establish a strategic partnership with Schlumberger Middle East SA (SLB) and Patterson-UTI International Holdings, Inc. (Patterson-UTI), pending the signing of definitive agreements and regulatory approvals. The primary focus of the new company will be unconventional drilling operations.
By leading the development of unconventional energy drilling in the Middle East and securing the UAE’s unconventional energy resources, ADNOC Drilling aims to leverage advanced innovations in AI-driven drilling design, completions engineering, and production solutions. This will be made possible through ADNOC Drilling’s recent collaboration with Alpha Dhabi and Enersol, which will strengthen its scalable technology ecosystem through investments in AI-enabled solutions and innovative technologies.
This contract award serves as a further demonstration of our commitment to supporting the UAE’s role as a reliable and trusted energy provider. It also generates a significant new revenue stream for ADNOC Drilling. Also, it solidifies the company’s leadership in the regional market.
Initial phase of unconventional development
During the initial phase of unconventional development, up to nine land rigs are expected to be employed. As of December 31, 2023, five of these rigs are already part of ADNOC Drilling’s fleet.
Furthermore, the contract is anticipated to start contributing to ADNOC Drilling’s revenue in the second half of this year.
The company’s full-year 2024 and mid-term outlook solely reflects the influence of this initial contract award. It indicates significant potential for growth and financial improvement in the medium to long term.
Unconventional energy further refers to oil and gas resources trapped in subsurface reservoirs that require specialized technology and processes to extract.
Additionally, Abu Dhabi currently possesses an estimated 220 billion barrels of unconventional oil and 460 trillion cubic feet of unconventional gas.
Moreover, the potential of unconventional energy in the region is vast. It is comparable to the abundant unconventional energy resources found in the United States.
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