ADNOC announces record $6bn investments

The Abu Dhabi National Oil Company (ADNOC) has announced record investments worth up to almost USD 6bn (AED 22bn) to enable drilling growth as it boosts its crude oil production capacity to 5 million barrels per day (mmbpd) by 2030 and drives gas self-sufficiency for the United Arab Emirates (UAE).
The investments are in the form of procurement awards to top-tier contractors for Wellheads and related components, Downhole Completion Equipment (DCE) and related services, and Liner Hangers and Cementing Accessories – all crucial in drilling for oil and gas and completing wells.
More than USD 900M (AED 3.3bn) worth of wellheads and over USD 700M (AED 2.6bnn) worth of Downhole Completion Equipment will be manufactured in the UAE as well as all liner hangers. In addition, USD 185M (AED 679M) in foreign direct investment (FDI) will flow into the UAE’s economy to establish two wellheads manufacturing and assembly facilities, enhance drilling-related equipment manufacturing and assembly, and enable local manufacturing of 20 new drilling completion products thereby strengthening the UAE’s drilling supply chain with vendor managed inventory.
The procurement award for wellheads and related components is worth up to USD 3.27bn (AED 12bn), making it the world’s largest in this category. Gulf Automation Services & Oilfield Supplies (GASOS), UAE agents for TechnipFMC, and Al Ghaith Oilfield Supplies & Services Company, UAE agents for Baker Hughes, secured the awards with both companies having an equal split of the scope which runs for 10 years.
The procurement award for Downhole Completion Equipment and related services is worth up to USD 2.34bn (AED 8.6bn), also making it the world’s largest in this category. Schlumberger Middle East S.A (Schlumberger) and Weatherford Bin Hamoodah Company L.L.C (Weatherford) secured the awards. Schlumberger’s scope is valued at up to USD 1.41bn (AED 5.18bn) while Weatherford’s scope is valued at up to USD 931M (AED 3.42bn). The award runs for five years with an option to extend for two years.
The procurement award for Liner Hangers and Cementing Accessories is worth up to USD 337M (AED 1.24bn) and runs for five years with an option to extend for two years.
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