ADNOC DRILLING AWARDED FIVE 10-YEAR DRILLING CONTRACTS WORTH $2 BILLION

(WO) – ADNOC Drilling Company PJSC confirmed the award of five 10-year contracts, totaling approximately $2 billion, in support of ADNOC Offshore’s growing drilling operations.

The contractual conditions, particularly the duration, were agreed with the client considering the strength of the offshore jack-up market with higher day rates. The contracts supporting drilling operations across five fields in ADNOC’s offshore portfolio are for the charter of five high-specification, premium jack-up rigs along with all required manpower and equipment.

The rigs will commence activity progressively from the end of 2023, with significant revenue expected in 2024 and first full-year revenue contribution from 2025.

The five rigs have been acquired as part of the company’s fast-tracked rig fleet expansion program, designed to enable the delivery of ADNOC’s accelerated production capacity growth to responsibly meet rising global energy demand. The new rigs - SALAMAH[2], AL SAADIYAT, AL SILA, RAMHAN and YAS - will be among the most capable, high-specification rigs working in the Arabian Gulf.

Each of the five rigs will be equipped with a battery energy storage system to increase efficiency and reduce emissions. The hybrid power technology system stores energy in its batteries to use when there is a need for continuous power or to provide instant extra power when there is an increase in demand.

The new rigs are central to ADNOC Drilling’s rigorous decarbonization strategy and the Company’s commitment to support ADNOC’s target to reduce greenhouse gas intensity by 25% by 2030, as well as the UAE Net Zero by 2050 strategic initiative.

Today’s $2 billion contract award follows more than $11.5 billion in long-term contracts announced since the beginning of 2022.