Major Contract Awarded for AI-Driven Well Digitalization

by Dubaiforum
3 minutes read
Major Contract Awarded for AI-Driven Well Digitalization

ADNOC Awards AED 3.38 Billion Contract to Advance AI-Driven Well Digitalization

In a significant move poised to reshape the landscape of oil and gas operations in the region, the Abu Dhabi National Oil Company (ADNOC) has secured a substantial AED 3.38 billion (0 million) contract with Jereh Oil & Gas Engineering Corporation. This partnership aims to enhance ADNOC’s artificial intelligence (AI)-powered well digitalization program. The overarching goal is to further optimize the performance and safety of oil extraction across the company’s extensive network of operational fields.

The project entails the extension of vital remote sensing and well-operating technologies across ADNOC’s Bab, Bu Hasa, and Southeast fields, with an anticipated completion date set for 2027. This ambitious initiative reflects ADNOC’s commitment to harnessing cutting-edge technology in its operations, aligning with global trends toward digitization and automation in the energy sector.

Notably, a remarkable aspect of this contract is its contribution to the United Arab Emirates (UAE) economy. According to ADNOC, over 80% of the contract’s value is expected to recirculate into the local economy through their In-Country Value (ICV) program. This strategic program aims to bolster domestic growth and diversification by prioritizing local businesses and services. The economic impact of this contract is expected to ripple across various sectors, creating opportunities for local suppliers and contractors to participate in this technological advancement.

Central to ADNOC’s digital transformation is its AI-driven program capable of remotely monitoring and managing an extensive network of over 2,000 wells. This technological integration is anticipated to vastly improve operational efficiency and safety, significantly reducing unproductive downtime that can often derail productivity in oil operations. By implementing real-time data collected from embedded sensors, the system empowers decision-makers with timely insights, allowing for immediate adjustments to optimize performance and mitigate potential risks.

ADNOC’s commitment to advancing AI in the energy sector is particularly noteworthy in an era where technological innovation serves as a linchpin in the pursuit of sustainable energy solutions. The organization employs a robust private 5G network to facilitate the seamless transmission of data, further bolstering the efficacy of its operations. Among the innovative tools at its disposal is RoboWell, an AI application designed to autonomously manage well operations. This integration of AI not only streamlines processes but also enhances the company’s ability to predict and respond to changes in extraction dynamics in real-time.

This project is a critical component of ADNOC’s broader strategy to emerge as a leader in AI-powered energy technology. As the global energy landscape continues to evolve amid growing environmental concerns and shifting market demands, ADNOC’s proactive approach emphasizes the importance of innovation in maintaining a competitive edge. By investing in advanced technologies now, ADNOC aims to position itself at the forefront of the energy sector’s digital revolution, catering to the future needs of both local and international energy markets.

The decision to invest heavily in AI and digitalization is particularly relevant within the context of the UAE’s Vision 2030, which seeks to diversify the nation’s economy and reduce its dependence on oil revenues. By embracing technological advancements, ADNOC not only aligns with national economic goals but also ensures its resilience and adaptability in a rapidly changing global energy framework.

In summation, ADNOC’s collaboration with Jereh Oil & Gas Engineering Corporation represents a landmark investment in the nexus of technology and energy production. By committing to AI-driven technologies and supporting local economic growth, ADNOC is not just enhancing its operational capabilities but is also setting a precedent for the future of the oil and gas industry in the UAE and beyond.

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#BusinessNews, #EconomyNews, #UAE

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