ADNOC Drilling Company PJSC (“ADNOC Drilling” or the “Company”) (ADX symbol: ADNOCDRILL / ISIN: AEA007301012) today announced that it has signed an agreement to acquire two premium high-specification Gusto MSC CJ46 design offshore jack-up drilling units (the “rigs”). The rigs will be delivered into Abu Dhabi waters and become operational during the fourth quarter of 2023 with meaningful revenue contribution from 2024.
The combined rig acquisition cost is $220 million and it’s included in the Company’s capital expenditure guidance. The acquisition is part of ADNOC Drilling’s fleet expansion and growth strategy, which is a key enabler of ADNOC’s accelerated production capacity growth to meet rising global energy demand. With this acquisition, the Company will almost double its offshore jack-up rig fleet since early 2021, with further significant expansion expected from now till the end of 2024.
Abdulrahman Abdulla Al Seiari, Chief Executive Officer of ADNOC Drilling, commented: “The acquisition of these premium jack-up rigs will support one of our major customers, ADNOC Offshore, with its drilling and completion services requirements, as it delivers accelerated production capacity. It is the next step in the execution of our strategy to rapidly grow our business, significantly boost revenue and increase shareholder returns.
“These rigs further cement our position as one of the world’s largest offshore jack-up rig fleet owners and supports our plan to grow our overall fleet to 142 owned rigs by 2024.”
Since listing on the Abu Dhabi Securities Exchange in October 2021, ADNOC Drilling has rapidly expanded its fleet from 95 to 115 owned rigs, as of March 31, 2023. With the addition of the rigs, the Company will operate one of the largest offshore jack-up fleets in the world, with plans for further growth.
As the Company’s new rigs enter the fleet, ADNOC Drilling expects to boost its financial and operating performance to the advantage of its customers, shareholders and the UAE. ADNOC Drilling is a key enabler of ADNOC’s accelerated production capacity growth.
