Abu Dhabi’s state-owned drilling company ADNOC Drilling has signed an agreement to purchase ten newbuild hybrid power land drilling rigs for a total of $252m.
China Petroleum Technology and Development Corporation (CPTDC), a wholly-owned subsidiary of China National Petroleum Corporation (CNPC), will build ten new hybrid power rigs.
The units will be built in China, with a 1500HP Fast Desert Moving design, and capabilities to work in cluster wells.
ADNOC Drilling intends to lease an additional four land rigs, to add a total of 14 new rigs to its fleet.
The company will gradually enter the rigs into its fleet, starting from the fourth quarter of this year, with partial revenue contribution expected from 2024.
ADNOC Drilling chief executive officer Abdulrahman Abdullah Al Seiari said: “This is yet another exciting step for ADNOC Drilling – these new rigs contribute to the capacity required to meet our customers’ expectations of maximum energy with minimal emissions.
“As our growth trajectory accelerates and we continue to build our capacity and capabilities to drive shareholder returns, our commitment to the decarbonisation of our operations remains fundamental.”
ADNOC Drilling said that the newbuild hybrid, grid-compatible land rigs are crucial for its decarbonisation strategy, as they use battery and engine automation, along with traditional diesel generators.
The hybrid power systems are designed to provide continuous power when there is a need and offer extra power instantly when there is a surge in demand.
Each newbuild hybrid rig is expected to reduce the company’s greenhouse gas emissions by 10% to 15%, supporting ADNOC’s aims to reduce 25% of its emissions by 2030.
The new rigs will be connected to the electrical grid, with minimum adjustment, based on rig location and the grid power, to further reduce the emissions, said ADNOC Drilling.
According to the company, the ten new rigs will play important role in increasing its operational onshore capacity and support ADNOC’s accelerated production capacity targets.
ADNOC’s accelerated production capacity targets aim to reach five million barrels of lower carbon intensity crude per day by 2027 and achieve gas self-sufficiency for the UAE.
Furthermore, ADNOC Drilling owns a large fleet of drilling and well completion rigs and is acquiring the new hybrid land rigs as part of its updated guidance.
