ADNOC Drilling Company PJSC recently announced that it has signed a $75 million deal for the purchase of six new-build hybrid land rigs.
The rigs will gradually enter the fleet from the second quarter of 2024, “with partial revenue and EBITDA contribution from 2024 and full-year contribution from all rigs in 2025,” ADNOC Drilling noted. Honghua Golden Coast will build the rigs, ADNOC Drilling revealed.
In its announcement, ADNOC Drilling highlighted that it has ordered a total of 16 newbuild hybrid land rigs through 2023. All of these are part of the mid-term guidance to reach an own rig count of 142 by the end of 2024. , the company pointed out.
According to its website, ADNOC Drilling’s rig fleet has quadrupled in 22 years. It currently stands at 115, rising from 108 in 2022, 96 in 2021, 93 in 2020, 52 in 2014 and 25 in 2000, a chart on the company’s site shows. ADNOC Drilling has 74 onshore rigs, 31 offshore rigs and 10 island rigs, its position stands out.
“As we implement our bold fleet expansion plan, we are working to ensure growth comes with delivering on our decarbonisation commitments,” Abdulrahman Abdullah Al Seiari, CEO of ADNOC Drilling, said in a company statement.
“The sixteen newbuild hybrid rigs commissioned so far this year are critical to ADNOC Drilling’s rigorous decarbonisation strategy and our commitment to support ADNOC’s aim to reduce gas intensity from ‘greenhouse effect by 25 percent by 2030, as well as the UAE’s Net Zero strategic initiative by 2050,” he added.
The rigs use a high-capacity battery and engine automation in parallel with traditional diesel generators, ADNOC Drilling said in the announcement. The hybrid power technology system stores energy in its batteries for use when there is a need for continuous power or to provide instant additional power when there is an increase in demand, reducing greenhouse gas emissions. greenhouse effect of a platform up to 15 percent compared to a traditional platform. , the company noted.
In March this year, ADNOC Drilling announced that it had signed an agreement to purchase ten new-build hybrid land drilling rigs for a total of $252 million.
In its March announcement, ADNOC Drilling noted that the new rigs were critical to increasing its operational capacity onshore and a direct response to ADNOC’s accelerated production capacity goals. The company said at the time that it is a key enabler of ADNOC’s accelerated production capacity targets of five million barrels of lower carbon intensity crude oil per day by 2027 and achieving gas self-sufficiency for the UAE united
“This is another exciting step for ADNOC Drilling: these new rigs contribute to the capacity needed to meet our customers’ expectations for maximum energy with minimum emissions,” Al Seiari said in a company statement in March.
“As our growth trajectory accelerates and we continue to build our capacity and capabilities to drive shareholder returns, our commitment to decarbonizing our operations remains critical,” he added.
In December last year, ADNOC Drilling announced that it had signed an agreement to acquire two additional Gusto MSC CJ46-X100-D offshore drilling units of “premium high specification” design. Those platforms had a combined cost of $200 million, the company noted at the time.
In November 2022, ADNOC Drilling revealed that it had signed an agreement to acquire three “new, high-specification” offshore jack-up drilling units. The rigs had a combined cost of $320 million, ADNOC Drilling noted.
Last month, ADNOC Drilling announced “strong” first-quarter 2023 profit growth year-on-year, which it said was driven by “accelerated expansion of the rig fleet and service offering.”
The company noted in its first-quarter results statement that its net profit rose 25 percent year-on-year, “supported by increased activity along with improved operational efficiency,” and that its 19 percent year-over-year revenue growth was “enabled by new platforms.” entering the operational fleet in the second half of 2022″.
ADNOC Drilling reported a net profit of $219 million in the first quarter of this year, compared with a net profit of $175 million in the first quarter of 2022 and revenue of $716 million in the first quarter of 2023, compared to revenue of $601 million in the first quarter last year.
“Our first quarter results are particularly pleasing as they clearly demonstrate the effective execution of our strategy, to grow profits by expanding our fleet and our offering, for the benefit of our customers and our shareholders,” he said. said Al Seiari at ADNOC Drilling’s first quarter results. statement
“To maximize shareholder value now and into the future, we will continue to secure long-term, high-quality contracts that provide excellent visibility into future earnings as well as protection against market volatility,” he added.
“At the same time, we will maintain our focus on operational excellence and sustainable operations, as well as capitalize on our unique position within the market, as we remain firmly on track to deliver on our 2023 guidance,” he said. continue Al Seiari.
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