ADNOC Drilling Company PJSC (ADNOC Drilling) has recently entered into a $75M agreement to procure six new-built hybrid power land rigs. These rigs will be constructed by Honghua Golden Coast and are expected to be gradually incorporated into the fleet starting from the second quarter of 2024.
The agreement stipulates that the rigs will contribute partially to the revenue and EBITDA from 2024, with a full-year contribution expected from all the rigs by 2025, according to WAM.
This acquisition, combined with the previously announced agreement for 10 newbuild hybrid power rigs in March, brings the total number of newbuild hybrid power land rigs ordered by ADNOC Drilling this year to 16. These additions align with ADNOC Drilling’s medium-term objective of reaching an owned-rig count of 142 by the end of 2024.
Abdulrahman Abdullah AlSeiari, Chief Executive Officer, ADNOC Drilling, commented, “As we implement our bold fleet expansion plan, we are working to ensure that growth comes with the delivery of our decarbonization commitments.”
“The sixteen newbuild hybrid rigs ordered so far this year are central to ADNOC Drilling’s rigorous decarbonization strategy and our commitment to support ADNOC’s target to reduce greenhouse gas intensity by 25% by 2030, as well as the UAE Net Zero by 2050 strategic initiative.’’
ADNOC Drilling is incorporating advanced hybrid power technology in their rigs, combining a high-capacity battery and engine automation alongside traditional diesel generators. This hybrid system allows the rigs to store energy in batteries, providing continuous power and instant extra power during periods of high demand. As a result, these innovative rigs can significantly reduce greenhouse gas emissions, by up to 15% compared to conventional rigs.
Furthermore, each rig is designed to be easily connected to the electrical grid with minimal adjustments, depending on the rig’s location and the availability of grid power. This provision further contributes to emission reduction efforts.
These drilling units are specifically designed as 750HP Fast Desert Moving hybrid workover land rigs, highlighting their efficiency and adaptability to various terrains and operational conditions.
