ADNOC Drilling has secured $2B contracts to provide five offshore jack-up rigs, bolstering ADNOC Group’s crude oil production capabilities. These 10-year contracts follow a series of long-term contract announcements totalling over $11.5B since 2022.
ADNOC Drilling will progressively commence operations with the rigs named Salamah, Al Saadiyat, Al Sila, Ramhan, and Yas from the end of 2023. Anticipated revenue in 2024 and full-year contributions in 2025 will be included in their 2023 and medium-term guidance.
Equipped with battery energy storage systems, the rigs aim to enhance efficiency and reduce emissions, aligning with ADNOC’s sustainability goals.
ADNOC Drilling has rapidly expanded its fleet, increasing from 95 to 115 owned rigs since its listing on the Abu Dhabi Securities Exchange in 2021. In line with its growth strategy, the company recently acquired six new-built hybrid power land rigs and two offshore jack-up rigs. Furthermore, plans are underway to purchase ten new-built hybrid power land drilling rigs, aiming to reach a fleet size of 142 rigs by the end of 2024.
ADNOC Drilling Reports Strong Q1 2023 Revenue Growth, Aims for UAE’s Production Capacity Target
ADNOC Drilling reported a 19% revenue increase to $716m in Q1 2023, driven by onshore and oilfield services segments. It maintains strong guidance for the year, projecting revenue between $3B and $3.2B, with an expected net profit of $850M to $1B. The company aims to achieve UAE’s production capacity target of five million barrels per day by 2027.
ADNOC Drilling’s expansion supports ADNOC’s accelerated production growth and aligns with the UAE’s commitment to reduce greenhouse gas intensity and achieve net-zero emissions by 2050. The company remains focused on long-term contracts, ensuring future earnings stability and shareholder returns while addressing global energy demands.
The company maintains a robust outlook for 2023, projecting revenue between $3B and $3.2B, showcasing a potential year-on-year growth of up to 20%. Furthermore, ADNOC Drilling anticipates a record net profit ranging from $850m to $1bn in 2023, while projecting capital in the range of $1.3B to $1.75B for the same period.
