Adnoc Drilling Company has officially announced the receipt of a contract worth an estimated $733 million from Adnoc Offshore for the provision of three advanced island drilling rigs. These rigs are intended to bolster the expanding operations at the offshore Zakum field.
Abdulrahman Abdulla Al Seiari, CEO of Adnoc Drilling, expressed his pride in receiving such a significant award, which he views as a pivotal step in the company's rapid growth trajectory. He highlighted that the new rigs will be the most sophisticated globally, incorporating artificial intelligence, a technology that is revolutionizing the industry.
The collaboration with Honghua Group (HH) is expected to enhance the industry's innovation and ingenuity, as they jointly design and construct these future-ready rigs, emphasizing efficiency, safety, and delivering superior value to Adnoc Offshore.
Tayba Abdul Rahim Al Hashemi, CEO of Adnoc Offshore, emphasized the importance of Adnoc Drilling's technical prowess and enhanced capabilities in meeting the increasing global energy needs sustainably and safely. This contract is seen as a reinforcement of their future partnership, aiming to leverage AI and innovation to maximize energy output, minimize emissions, and unlock substantial value for stakeholders.
The contract, which adheres to existing agreements with long-term revenue guarantees, will see the deployment of these three new island rigs on both existing and newly constructed artificial islands at the Zakum field. These rigs, to be built by HH, will feature cutting-edge technology and automation, with operations expected to start in 2026.
The partnership between Adnoc Drilling and Honghua Group is focused on integrating AI, digitization, and advanced technology into the design and operation of these next-generation rigs. They also plan to collaborate with AIQ, an Abu Dhabi-based AI pioneer, to further enhance these efforts.
The rig operating systems will utilize real-time data on condition, performance, and utilization to generate actionable insights, thereby improving rig performance, efficiency, safety, and well delivery times. Moreover, these rigs are designed for extended reach drilling (ERD), with some of the world's longest wells being drilled from these islands, the latest reaching over 52,000 feet.
The rigs will also feature advanced walking capabilities between wells, eliminating the need for dismantling during relocation, significantly enhancing efficiency and safety while reducing costs and emissions. The expected capital expenditure for these new rigs is approximately $210 million, primarily in 2025, with the first full-year revenue anticipated in 2027. The Island rig segment's 2024 guidance remains unchanged at $200-250 million, operating ten island rigs currently.
By 2026, Adnoc Drilling's fleet is projected to reach at least 148 rigs, including these three new rigs and previously announced land rigs for the initial phase of the unconventionals development. Since its IPO in the fourth quarter of 2021, Adnoc Drilling has invested over $2.2 billion in creating one of the world's largest integrated drilling fleets.
