Adnoc Drilling Company secures a $1.7 billion contract from Adnoc to provide drilling services for the recovery of unconventional energy resources. To cater to this contract and tap into future opportunities in unconventional resources, Adnoc Drilling establishes a new company, Turnwell Industries LLC OPC. The agreement involves the delivery of 144 unconventional oil and gas wells. Additionally, Adnoc Drilling is set to form a strategic partnership with Schlumberger Middle East SA (SLB) and Patterson-UTI International Holdings, focusing on unconventional drilling operations.
Abdulmunim Saif Al Kindy, Adnoc upstream executive director, highlights the importance of providing energy to meet the growing global demand and ensure a smooth energy transition. He emphasized the use of partnerships, AI, and advanced technologies to unlock Abu Dhabi’s energy resources. Adnoc Drilling CEO, Abdulrahman Abdulla Al Seiari, sees the award as a transformative opportunity to develop Abu Dhabi’s unconventional resources by leveraging the company’s expertise and capabilities. This initiative marks the beginning of a significant expansion for Adnoc Drilling.
Adnoc Drilling aims to lead unconventional energy drilling development in the Middle East, catering to the UAE’s energy needs. The company plans to utilize innovative technologies, such as AI smart drilling design, completions engineering, and production solutions. Through partnerships and collaborations with industry leaders, Adnoc Drilling seeks to enhance its operations and deliver thousands of wells to support the region’s energy requirements.
The award signifies Adnoc Drilling’s commitment to strengthening the UAE’s position as a reliable energy provider and supporting the nation’s gas growth ambitions. The company’s collaboration with Alpha Dhabi, Enersol, will enhance its technology ecosystem through investments in AI-enabled solutions. This strategic move aligns with Adnoc Drilling’s vision to leverage cutting-edge technologies in unconventional energy drilling.
The initial phase of unconventional development is expected to employ up to nine land rigs, with five already part of Adnoc Drilling’s fleet. The contract is projected to begin contributing to the company’s revenue in the second half of the year. Adnoc Drilling’s 2024 and mid-term guidance reflects the potential growth opportunities stemming from this award and its impact on the company’s financials in the long run.
Unconventional energy resources hold significant promise for Abu Dhabi, with estimates showing vast reserves of oil and gas trapped in subsurface reservoirs. The region’s unconventional energy potential rivals that of the US, presenting a unique opportunity for development and production. Adnoc Drilling’s focus on exploring and extracting these unconventional resources underscores its commitment to meeting the energy demands of the future and supporting the UAE’s energy transition goals.
