ADNOC Drilling has secured a $1.7bn contract from ADNOC to provide drilling and associated services for the extraction of unconventional energy resources in the UAE.
According to ADNOC Drilling, UAE’s capital Abu Dhabi currently has an estimated 220 billion barrels of unconventional oil alongside 460 trillion cubic feet (TCF) of unconventional gas.
To fulfil the contract and explore future opportunities in unconventional resources, ADNOC Drilling has established a new company, Turnwell Industries.
The new subsidiary of ADNOC Drilling will be responsible for delivering 144 unconventional oil and gas wells. Turnwell Industries will mainly focus on unconventional drilling operations.
ADNOC Drilling has also signed a term sheet to form a partnership with Schlumberger Middle East, a subsidiary of SLB, and Patterson-UTI International. This partnership is contingent upon the signing of definitive agreements and obtaining necessary regulatory approvals.
Both Schlumberger Middle East and Patterson-UTI are expected to hold minority equity interests in Turnwell Industries.
In exchange for their equity interest, Patterson-UTI plans to provide drilling, completion, and other oilfield service expertise to Turnwell Industries, along with a limited cash contribution for working capital.
ADNOC Drilling CEO Abdulrahman Abdulla Al Seiari said: “Abu Dhabi’s unconventional energy resources are among the world’s largest. This award, for 144 wells is just the beginning.
“It represents a transformational opportunity for ADNOC Drilling as the UAE’s world class unconventional energy resources will require many thousands more wells and we are in a prime position to deliver them.”
The initial phase of unconventional resource development is expected to utilise up to nine land rigs, five of which are already part of ADNOC Drilling’s fleet as of 31 December 2023.
The contract is anticipated to begin contributing to ADNOC Drilling’s revenue in the second half of this year.
ADNOC Drilling will utilise innovations in artificial intelligence (AI) powered smart drilling design, completions engineering, and production solutions. This initiative is supported by Enersol, its recent joint venture with Alpha Dhabi.
Enersol will enhance its scalable technology ecosystem through investments in and acquisitions of AI-enabled solutions and innovative technologies.
