ADNOC Drilling announced today that it has received a letter of award for a $1.63 billion, five-year contract for integrated drilling services (IDS) from ADNOC Offshore. This award reinforces ADNOC Drilling’s unique position within ADNOC Group and as the region’s leading provider of advanced, integrated energy services, reflecting the strength of its strategy to expand its fleet, service offerings and capabilities.
“Our IDS offering delivers superior value and innovation, enabling us to play a pivotal role in reshaping the future of energy services in the region. This milestone underscores our commitment to operational excellence and positions ADNOC Drilling as the partner of choice in an increasingly dynamic and complex energy landscape,” stated Abdulrahman Abdulla Al Seiari, ADNOC Drilling CEO.
Contract to support company’s growing oilfield services segment
The contract covers the provision of directional drilling, drilling fluids, cementing, wireline logging and tubular running services. It also incorporates advanced engineering and technical support for the effective delivery of extended reach and maximum reservoir wells offshore.
“This five-year award is a strong reflection of ADNOC Drilling’s long-term contracting model, which provides revenue visibility and stability over the contract period. It aligns with our disciplined approach to building a resilient business foundation, capable of generating consistent cash flow and supporting sustainable shareholder returns through the cycle,” added Al Seiari.
ADNOC Drilling continues its commitment to operational excellence, innovation and the adoption of artificial technology (AI) and advanced technologies, underlining its ability to deliver end-to-end solutions that optimize performance while unlocking significant value for its clients.
This contract also supports the growing Oilfield Services segment, and its economic impact is already included in the current 2025 and 2026 guidance, underpinning the visibility of the company’s business model and in support of the company’s financial targets.
Read: Oil prices rise to $66.57 on tighter supply prospects as some OPEC members pledge more cuts
IDS business adds fast-growing revenue stream to ADNOC Drilling
As the demand for advanced, high-performance energy solutions increases, the growth of ADNOC Drilling’s IDS portfolio is a cornerstone of the company’s strategy, which encompasses enhancing fleet utilization, diversifying revenue streams in addition to accelerating sustainable and long-term growth and returns.
“ADNOC Drilling is a key enabler on our accelerated journey to responsibly meet the world’s growing energy needs. This contract gives us access to their cutting-edge capabilities and market-leading end-to-end services, which will maximize efficiency and generate significant value for our shareholders and the UAE,” stated Tayba Al Hashemi, ADNOC Offshore CEO.
The IDS business brings a relatively new and fast-growing revenue stream to ADNOC Drilling, significantly enhancing business resilience and future-proofing the company through the cycles. With its leading market position in IDS in the UAE, ADNOC Drilling is gearing up to capture further growth and deepen its leadership in this high-potential segment.
