ADNOC Drilling Firm PJSC, has secured a $1.7 billion contract from its guardian firm Abu Dhabi Nationwide Oil Firm (ADNOC) to supply drilling and related companies for the restoration of unconventional power sources.
To execute the contract, ADNOC Drilling has included a brand new firm, Turnwell Industries LLC OPC, to drill and full 144 unconventional oil and fuel wells for ADNOC, in line with a information launch Monday.
Additional, ADNOC Drilling signed a non-binding time period sheet to enter right into a strategic partnership with Schlumberger Center East SA (SLB), a subsidiary of SLB and Patterson-UTI Worldwide Holdings, Inc.
Topic to the execution of definitive agreements and any mandatory regulatory approvals, Patterson-UTI and Schlumberger Center East SA will maintain a minority fairness curiosity in Turnwell, in line with the discharge.
In the meantime, ADNOC Drilling additionally entered right into a strategic three way partnership with Alpha Dhabi referred to as Enersol, enabling scalable progressive applied sciences to help cutting-edge AI good drilling design, completions engineering, and manufacturing options.
The preliminary section of unconventional growth is predicted to make use of as much as 9 land rigs, of which 5 are already included in ADNOC Drilling’s fleet as of the tip of 2023. The contract is predicted to begin contributing to ADNOC Drilling’s income in direction of the second half of this 12 months. Abu Dhabi holds an estimated 220 billion barrels of unconventional oil and 460 TCF of unconventional fuel in place, in line with the information launch.
”Our aim at ADNOC is to supply the power and power merchandise that individuals rely upon daily to energy their lives and guarantee a simply, orderly and equitable power transition. This award will speed up the event of Abu Dhabi’s world-class sources to fulfill the world’s rising demand for reasonably priced, accessible power,” ADNOC Upstream Govt Director and Vice Chairman of ADNOC Drilling Abdulmunim Saif Al Kindy mentioned. “ADNOC Drilling is completely positioned to responsibly develop these sources. Using partnerships, progressive AI, digitalization and superior applied sciences we are going to unlock Abu Dhabi’s considerable power sources, to drive worth for the UAE [United Arab Emirates]”.
“Abu Dhabi’s unconventional power sources are among the many world’s largest. This award, for 144 wells is only the start,” ADNOC Drilling CEO Abdulrahman Abdulla Al Seiari mentioned. “It represents a transformational alternative for ADNOC Drilling because the UAE’s world-class unconventional power sources would require many hundreds extra wells and we’re in a main place to ship them”.
“It represents a major enlargement of our operations and specialist capabilities and to assist us with that, we’ve got arrange a brand new firm referred to as Turnwell, and have signed a time period sheet with SLB and Patterson-UTI, for potential partnership and help with the newest expertise, specialist companies and improvements within the unconventional power drilling house topic to signing definitive agreements and any mandatory regulatory approvals,” he added.
Patterson-UTI Feedback
“We’re happy that ADNOC Drilling acknowledges Patterson-UTI as a premier drilling and completions firm and expertise chief, and we sit up for reaching an settlement to convey our experience to the preliminary section of this groundbreaking undertaking,” Patterson-UTI CEO Andy Hendricks mentioned in a separate information launch.
“We’re excited by the chance to accomplice with ADNOC Drilling and SLB to enhance our place in one of the necessary oil and fuel areas on the earth. There’s a huge unconventional useful resource that’s anticipated to be developed within the United Arab Emirates over a few years, and we’re assured that our experience and data from our expertise in the USA may also help Turnwell ship to the shopper U.S. shale kind efficiencies to the drilling and completions course of,” Hendricks added.
“I’m enthusiastic about this potential alternative to permit Patterson-UTI to develop our presence within the Center East in a capital environment friendly method, as we don’t count on to initially contribute any capital tools. We additionally don’t count on this chance to alter our beforehand introduced capital expenditure finances or affect our expectation to return at the very least $400 million to shareholders in 2024 via dividends and share repurchases,” Hendricks continued.
“We’ll proceed to be strategic about our capital deployment and this potential alternative with ADNOC Drilling permits us to take part within the early levels of a undertaking that would present substantial progress prospects over the course of a few years. We expect this chance has the potential to create important worth for our companions, the shopper, and our shareholders,” he concluded.
The contract award marks a major step in restoration of Abu Dhabi’s unconventional power sources underlining the UAE’s function [in] assembly the world’s rising demand for reasonably priced, accessible power, ADNOC famous.
Patterson-UTI describes itself as one of many main oilfield companies firms in North America and has been closely concerned within the growth of U.S. unconventional power sources, together with contract drilling companies, built-in effectively completion companies and directional drilling companies.
To contact the writer, e mail rocky.teodoro@rigzone.com