ADNOC Drilling bags $1.7bn contract for unconventional energy development
ADNOC Drilling, a subsidiary of the Abu Dhabi National Oil Company (ADNOC), has won a $1.7bn drilling contract aimed at unlocking Abu Dhabi's unconventional energy resources.
Under this contract, ADNOC Drilling will provide drilling and associated services for the recovery of unconventional energy resources. To spearhead this endeavuor, a new entity named Turnwell Industries has been established. Turnwell Industries will be responsible for delivering 144 unconventional oil and gas wells as part of this contract.
ADNOC Drilling has also entered into a term sheet for a strategic partnership with Schlumberger Middle East and Patterson-UTI International Holdings, subject to the signing of definitive agreements and regulatory approvals. This partnership will primarily focus on unconventional drilling operations.
“This award will accelerate the development of Abu Dhabi’s world-class resources to meet the world’s growing demand for affordable, accessible energy," Abdulmunim Saif Al Kindy, executive director of ADNOC Upstream, said.
The initial phase of unconventional development is projected to employ up to nine land rigs, with five already integrated into ADNOC Drilling's existing fleet. Operations under this contract are expected to commence in the second half of this year.
Abu Dhabi boasts an estimated 220bn barrels of unconventional oil and 460 trillion ft3 of unconventional gas in place, according to ADNOC Drilling.