Abu Dhabi National Oil Company (Adnoc) on Wednesday announced the award of five framework agreements valued at $1.83 billion (Dhs6.72 billion) for Directional Drilling and Logging While Drilling (LWD) to support its efforts to expand production capacity of its low carbon oil and gas resources to help meet the world’s growing demand for energy.

The framework agreements are the largest of such awards in the oil and gas industry and were awarded to Al Ghaith Oilfield Supplies and Services Company, Al Mansoori Directional Drilling Services (Al Mansoori), Schlumberger Middle East S.A (Schlumberger), Haliburton Worldwide Limited Abu Dhabi (Haliburton) and Weatherford Bin Hamoodah Company LLC (Weatherford), following a competitive tender process.

The awards cover Adnoc’s onshore and offshore fields and will run for five years with an option for a further two years. Over 75% of the award value could flow back into the UAE economy under Adnoc’s In-Country Value program over the duration of the agreements.

Yaser Saeed Almazrouei, Adnoc Upstream Executive Director, said, “As Adnoc responds to rising global energy demand, we are responsibly ramping up drilling activities to further unlock Abu Dhabi’s oil and gas resources which have some of the lowest carbon intensity in the world. These awards build on our ongoing investments in drilling services and they will deliver substantial in-country value for the nation to support economic growth and diversification, in line with the UAE Leadership’s wise directives.”

The framework agreement awards will support Adnoc’s requirement to drill thousands of new wells to expand its production capacity to five million barrels per day (mmbpd) by 2030, enable gas self-sufficiency for the UAE and remain a leading low-cost, low-carbon oil producer. The awards will also enable hundreds of millions of dollars in cost savings.

Adnoc is optimising its procurement approach to reflect market dynamics, focusing on long-term contracts with an optimal number of suppliers that provide stable and reliable delivery at highly competitive rates. Since November 2021, Adnoc has awarded drilling agreements worth over Dhs40.37 billion to contractors for wellheads and related components, downhole completion equipment and related services, liner hangers, cementing services, wireline logging and directional drilling.

Directional drilling and logging while drilling entails controlling the direction and deviation of a wellbore while drilling to access oil and gas resources and measuring formation properties to enhance production.

Adnoc is a leading diversified energy and petrochemicals group wholly owned by the Emirate of Abu Dhabi. adnoc’s objective is to maximize the value of the Emirate’s vast hydrocarbon reserves through responsible and sustainable exploration and production to support the United Arab Emirates’ economic growth and diversification.

Meanwhile, Abu Dhabi Department of Energy (DoE) has announced that the development of its hydrogen policy and regulatory framework aims to accelerate the UAE’s national hydrogen strategy and help the nation attain global leadership in low-carbon and clean hydrogen. For the design of this regulatory framework, the DoE is working with key Abu Dhabi government and private sector stakeholders including ADNOC, Mubadala, Masdar, ADQ, TAQA, Emirates Water and Electricity Company, Abu Dhabi Ports, Ministry of Infrastructure and Energy, Department of Economic Development, Department of Municipalities and Transport, Department of Finance and Environment Agency – Abu Dhabi.

Abu Dhabi Department of Energy’s hydrogen policy and regulatory framework aims to clearly define policies, regulations, standards, and certifications for the emerging hydrogen industry to be globally competitive. Due to the nature of the industry, its wide target markets, emerging industrial forms and functions, growth characteristics of demand, and deeply technical components, a policy and regulatory framework is essential to ensure sustainable developments and to position Abu Dhabi as a leader in the production and usage of hydrogen worldwide. The DoE expects to report on the outcomes of the Policy and the regulatory framework before the end of 2022.

Eng. Ahmed Mohammed Belajer Al Rumaithi, Undersecretary of the Abu Dhabi Department of Energy, said: “A vibrant low carbon hydrogen production and consumption industry will place Abu Dhabi and the UAE at the global forefront of countries producing green energy. It can potentially increase low-carbon hydrogen production in Abu Dhabi to more than a million tonnes per annum by 2030. Locally produced hydrogen will act as a driver of innovation and economic diversification, allowing for the decarbonisation of the economy in line with UAE National Energy Strategy 2050, Net Zero commitment and improved energy security & to support the economic, environmental, and social sustainability requirements of the emirate.”

WAM