Adnoc expands rig fleet to support oil capacity growth

Abu Dhabi's state-owned Adnoc has signed an agreement to acquire two offshore jack-up drilling units to support the company's ambitious plans to boost its crude and natural gas production capacity.

The new rigs — being acquired from Well Target Five and Well Target Six — will start operations in the third quarter of this year year, boosting the company's drilling fleet to 106, the largest among any state-owned company in the Middle East, Adnoc said. The firm did not disclose the value of the agreement.

Before this acquisition, Adnoc had added eight rigs to its fleet since the company listed its drilling subsidiary on the Abu Dhabi Securities Exchange in October 2021.

This agreement is the latest in a line of deals aimed at supporting Adnoc's plan to boost UAE crude production capacity to 5mn b/d by 2030 from a little over 4mn b/d today, and to drive gas self-sufficiency in the country. Adnoc said in February that it would need to drill around 700 wells a year to meet its target.

"This is another important step in our fast-paced expansion and growth programme, ensuring that we meet increasing demand as we enable Adnoc's ambitious oil and gas production capacity growth," Adnoc Driling's chief executive Abdulrahman Abdullah al-Seiari said.

Adnoc said in November last year it plans to spend nearly $75bn on oil projects, drilling and operations in 2022, of which 30pc would be earmarked for drilling.

By Nader Itayim