Home News ADNOC boosts upstream growth with $658 million framework agreements

ADNOC boosts upstream growth with $658 million framework agreements

by Dubai Forum
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Abu Dhabi National Oil Company (ADNOC) announced on Thursday that it had awarded framework agreements valued at US $658 million (AED 2.4 billion) to five companies for cementing services as it continues to invest to enable drilling growth and expand its crude oil production capacity.

The agreements were awarded to Haliburton Abu Dhabi, Baker Middle East, Emirates Western Oil Well Drilling & Maintenance Co, NESR Energy Services and Emjel Oil Field Services, covering ADNOC’s onshore and offshore fields and will run for five years with an option for a further two years.

The award for cementing services takes the total value of ADNOC’s drilling-related framework agreements and procurement awards since November 2021 to over $8.5 billion, supporting the company’s drilling requirements as it increases its crude oil production capacity to five million barrels per day (mmbpd) by 2030.

Cementing is an important step in the drilling and completion of oil and gas wells. It involves mixing together cement slurry, additives and water and pumping the mixture between the rock formation and well casing to protect and seal the wellbore.

“The awards for cementing services will support the ongoing expansion of ADNOC’s drilling activities as we grow our production capacity, strengthening our position as a reliable global supplier of some of the world’s most carbon efficient barrels,” Yaser Saeed Almazrouei, ADNOC Upstream Executive Director, said in a statement.

According to the company, more than 65 percent of the award value could flow back into the United Arab Emirates economy under ADNOC’s In-Country Value programme. Local manufacturing opportunities will also create skilled employment for UAE Nationals, it said. The smart nature of the awards will also enable ADNOC to realise hundreds of millions of dollars in cost savings, the company said.

DF

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