ADNOC Drilling, a subsidiary of UAE’s state-owned Abu Dhabi National Oil Company (ADNOC), has announced the completion of first fully integrated drilling services well in the Al Dabbyia onshore field.
Located in the Al Dhafra Region of the Abu Dhabi, the well was the first to be drilled in a fully integrated way by ADNOC in collaboration with US-based oil field services provider Baker Hughes, a GE Company (BHGE). The first well is claimed to have been completed ahead of plan and within budget.
ADNOC upstream executive director Abdulmunim Saif Al Kindy said: “Today marks an important milestone in ADNOC Drilling’s history as the company sets out to deliver fully integrated services across the drilling value chain, unlocking new growth opportunities and revenue potential.
“The transformation of ADNOC Drilling into a fully integrated drilling and well-completion company is part of ADNOC’s group-wide transformation to ensure it thrives in the evolving energy landscape and takes advantage of new market opportunities.”
ADNOC is planning to increase its oil production capacity to 4 million barrels per day (bpd) by the end of 2020 and 5 bpd by 2030. It plans to grow its conventional drilling activity by 40% by 2025.
In October last year, BHGE entered into an agreement to own 5% stake in ADNOC Drilling, which will remain the sole rig provider to the ADNOC Group of companies.
As per the agreement signed earlier, BHGE serves as the exclusive provider of certain equipment and technologies associated with integrated drilling offering to support the growth of ADNOC Drilling.
ADNOC Drilling CEO Abdalla Saeed Al Suwaidi said: “Becoming a fully integrated drilling and well-completion company is another major milestone in our development and expansion strategy.
“It will enable us to better support ADNOC in delivering its exploration and production growth plans and in capturing more value from every barrel of oil it produces. It also increases the company’s competitiveness, strengthens our service offering and positions ADNOC for future regional expansion.”
With a daily output of about 3 million barrels of oil and 10.5 billion cubic feet of natural gas, ADNOC is one of the world’s leading diversified energy and petrochemicals groups.