ADNOC Offshore Awards Contract to ADNOC Drilling for Three Island Rigs

UAE-based ADNOC Offshore has handed out a contract to its sister company ADNOC Drilling for three island rigs set to support expanding operations at a development project offshore Abu Dhabi.

With an estimated total contract value of $806 million, the rig trio is destined for the Zakum development project. Discovered in 1963, the Upper Zakum oil field is said to be the second-largest offshore oil field in the world.

According to ADNOC Drilling, the latest award marks six island rig contracts awarded since July 2024, reinforcing the firm’s path to bring its fleet to 151 rigs by 2028 in Abu Dhabi and beyond.

New Generation Island Rigs with AI Technology

Scheduled to gradually join the UAE player’s fleet between 2027 and 2028, the new rigs will be developed through a strategic collaboration between ADNOC Drilling and Honghua Group (HH). As disclosed, the two paired up specifically to embed the transformative power of AI, advanced digitalization, and real-time analytics into rig design and operations.

“These next generation island rigs, built with embedded artificial intelligence (AI), represent a leap forward in technology, enhancing safety, efficiency and performance. This award strengthens our position as a critical enabler of ADNOC’s production capacity targets, while delivering sustainable, high-quality returns for our shareholders well into 2038 and beyond,” noted ADNOC Drilling CEO Abdulrahman Abdulla Al Seiari.

Enhancing Operational Efficiency and Safety

The three new island rigs will drill and complete wells on ADNOC’s existing and newly constructed artificial islands. The capital expenditure for acquiring these new rigs is anticipated to be broadly similar to that of the three island rigs announced in July 2024.

Tayba Abdul Rahim Al Hashemi, Chief Executive Officer of ADNOC Offshore, commented: “We are focused on unlocking maximum value from the resources in Abu Dhabi’s waters in the most efficient and innovative ways possible. These advanced island rigs delivered by ADNOC Drilling will play a vital role in achieving our production capacity goals and meeting global energy demand. Together, we are pushing the boundaries of technology, operational excellence and partnership to power sustainable growth.”

Thanks to real-time condition monitoring, performance optimization, and predictive analytics, the rigs are expected to generate insights to help boost operational efficiency, improve well delivery times, and enhance safety.

State-of-the-Art Technology for Extended Reach Drilling

The rigs will be optimized for extended reach drilling (ERD) on ADNOC’s artificial islands. According to the UAE firm, these islands are home to the world’s five longest wells, including a recent record-setting well drilled at 53,000 feet.

As explained, state-of-the-art walking capabilities will enable seamless movement between well slots without the need for rig dismantling, significantly improving uptime, reducing emissions, and lowering operating costs.

Recent Achievements and Future Endeavors

Last month, the drilling player received a letter of award for integrated drilling services (IDS) from ADNOC Offshore. The contract encompasses a range of services, incorporating what the firm says is advanced engineering and technical support for the delivery of extended reach and maximum reservoir wells offshore.