In a contract valued at $733 million, ADNOC Drilling will deploy three ‘island’ drilling rigs for the offshore Zakum field operations in Abu Dhabi, awarded by ADNOC Offshore. The new island rigs will operate on both existing and newly constructed artificial islands for the drilling and completion of wells.

The contract follows existing agreements with ADNOC Drilling, with revenue supported by the long-term duration and guaranteed returns. The capital expenditure for the new rigs will be around $210 million, mostly occurring in 2025. ADNOC Drilling expects the first full-year revenue from these new rigs in 2027.

“This deal marks a significant milestone in our company’s accelerated growth journey,” said Abdulrahman Abdulla Al Seiari, CEO of ADNOC Drilling. “These new island rigs will be the most advanced in the world, embracing AI, the most transformative technology of our generation.”

The rigs will be constructed by Honghua Group, with delivery and commencement of operations at Zakum expected in 2026. The partnership between ADNOC Drilling and Honghua Group aims to leverage the transformative nature of AI, digitization, and advanced technology in the design and operation of these next-generation drilling rigs. ADNOC Drilling and Honghua Group will also collaborate with AIQ, the Abu Dhabi-based entity focused on energy sector needs.

Since its IPO in the fourth quarter of 2021, ADNOC Drilling has invested more than $2.2 billion in building one of the largest integrated drilling fleets in the world. The full-year 2024 guidance for the ‘island rig’ segment, which currently operates 10 island rigs, remains unchanged at $200 million to $250 million.

With the addition of these three new rigs and the previously announced three land rigs for the initial phase of unconventional development, ADNOC Drilling’s fleet is expected to total at least 148 rigs by 2026.

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