ADNOC Drilling Company has announced the award of a $1.15 billion, 15-year contract for two jack-up rigs by ADNOC Offshore to support its expanding offshore operations. This agreement will build on existing contracts, introducing accretive rates that will generate long-term revenue and attractive returns, according to a statement.
Abdulrahman Abdulla Al Seiari, CEO of ADNOC Drilling, indicated that the new contract represents a significant vote of confidence in the company’s technical leadership, operational excellence, and long-term value creation. He noted that by integrating artificial intelligence (AI), automation, and digitalization capabilities, the two new jack-up rigs—ADNOC Drilling’s newest and most advanced—would ensure superior efficiency and performance for ADNOC Offshore.
He mentioned that this contract would secure operations until 2040 and beyond, offering strong, resilient, and predictable returns. This, he emphasized, not only reinforces their role in achieving ADNOC’s production capacity milestones but also drives sustainable long-term growth for shareholders.
ADNOC Drilling has 47 offshore rigs, making it one of the largest operational offshore fleets in the world. This positions the company uniquely to support the UAE’s long-term energy strategy. The scale of the company’s offshore fleet ensures reliability and flexibility. This enables the rapid deployment of rigs to meet growing demand. At the same time, it maintains operational excellence and safety.
New rigs enhance In-Country Value and economic development
The rigs will leverage advanced digitalization, real-time data analytics and AI as ADNOC Drilling continues to deploy the technology throughout its fleet to improve safety, efficiency and maximise asset value and operational uptime.
Furthermore, these long-term contracts clearly demonstrate the resilience and stability of ADNOC Drilling’s business model. They also highlight the long-term visibility it offers, which provides attractive returns. Multi-year engagements like these establish a strong foundation for recurring revenue and earnings growth. They also support the Company’s capacity to deliver resilient, sustainable, and increasing returns to shareholders.
The rigs are expected to commence operations around the end of 2Q 2025, delivering revenue in the second half of 2025 onwards. This award further de-risks and reaffirms ADNOC Drilling’s current 2025 and medium-term guidance.
