Adnoc Drilling secures $1.63b contract from Adnoc Offshore

21/04/2025 12:59 AST

Adnoc Drilling, the UAE's leading drilling services provider, has clinched a $1.63 billion, five-year contract from Adnoc Offshore to deliver integrated drilling services (IDS).

Announced on Thursday, the deal bolsters Adnoc Drilling's pivotal role within the Adnoc Group and its position as the region's premier provider of advanced energy services. The latest contract underscores Adnoc Drilling's long-term contracting model, which ensures revenue visibility and stability.

Abdulrahman Abdulla Al Seiari, chief executive of Adnoc Drilling, said: "This five-year award reflects our disciplined approach to building a resilient business capable of generating consistent cash flow and sustainable shareholder returns. It validates our strategic direction and showcases Adnoc Offshore's confidence in our innovative IDS offerings, which are reshaping the future of energy services in the region."

Tayba Al Hashemi, CEO of Adnoc Offshore, highlighted the partnership's value, stating, "Adnoc Drilling's cutting-edge capabilities and market-leading services will maximise efficiency and deliver significant value for our shareholders and the UAE. They are a key enabler in our mission to responsibly meet global energy demands."

The award aligns with Adnoc Drilling's focus on operational excellence, innovation, and the integration of artificial intelligence (AI) and advanced technologies. The IDS portfolio, a fast-growing revenue stream, enhances fleet utilisation, diversifies income, and drives sustainable growth. This contract supports Adnoc Drilling's Oilfield Services segment and is already factored into its 2025 and 2026 financial guidance, reinforcing the company's robust business model.

Adnoc Drilling's leadership in IDS positions it to capitalide on the rising demand for high-performance energy solutions. The company's ability to deliver end-to-end services optimises performance and unlocks significant value for clients, future-proofing its operations in a dynamic energy landscape. This latest contract further strengthens Adnoc Drilling's market dominance in the UAE and its potential for regional expansion.

The latest contract builds on Adnoc Drilling's track record of securing high-value deals. In 2023, the company won a $733 million contract for IDS from Adnoc Offshore, followed by a $412 million deal in 2024 for advanced drilling technologies. These contracts, combined with the latest award, demonstrate Adnoc Drilling's growing influence and its ability to meet the complex demands of the energy industry.

Industry analysts view the contract as a testament to Adnoc Drilling's strategic vision. By leveraging AI and advanced technologies, the company optimises drilling efficiency, reduces operational costs, and enhances environmental performance. Its IDS offerings integrate multiple services, from well planning to execution, providing clients with seamless, cost-effective solutions. This approach has positioned Adnoc Drilling as a partner of choice for major energy players like Adnoc Offshore.

The economic impact of the contract extends beyond Adnoc Drilling, contributing to the UAE's broader energy ecosystem. By driving innovation and efficiency, the company supports the nation's goal of maintaining its position as a global energy hub. The deal also reinforces investor confidence in Adnoc Drilling's ability to deliver consistent returns, even amidst market fluctuations.

Khaleej Times