Abu Dhabi National Oil Company (ADNOC) is investing a record $6 billion to boost its crude oil production capacity to 5 million bpd by the end of the decade, CEO Sultan Al Jaber announced during the Abu Dhabi International Petroleum Exhibition and Conference (Adipec) on Tuesday. The investments come as procurement awards to major contractors for crucial equipment and services in oil and gas drilling and well completion.
The investment includes $3.27 billion worth of contracts related to wellheads and related components awarded to Gulf Automation Services & Oilfield Supplies (GASOS) and Al Ghaith Oilfield Supplies & Services Company. They are the UAE unit of TechnipFMC and Baker Hughes, respectively. The investment also covers $2.34 billion worth of contracts related to Downhole Completion Equipment awarded to Schlumberger Middle East S.A and Weatherford Bin Hamoodah Company. Uni-Arab Engineering & Oilfield Service and Weatherford Bin Hamoodah also secured up to $337 million worth of contracts related to Liner Hangers and Cementing Accessories.
Under ADNOC’s In-Country Value (ICV) programme, nearly 60% of the total investment could flow back into the UAE’s economy. All liner hangers, more than $900 million worth of wellheads, and over $700 million worth of Downhole Completion Equipment will be manufactured domestically. Furthermore, $185 million (AED679 million) in foreign direct investment (FDI) will be spent on setting up two wellheads manufacturing and assembly facilities in the UAE.
