ADNOC Acquires Two New Rigs

ADNOC Drilling Co. PJSC has placed a purchase for two new jack-up rigs to be deployed into operation by the fourth quarter expanding its existing fleet of over 100 owned rigs.

The $220-million Gusto MSC CJ46 drilling units will be delivered into Abu Dhabi waters, with maiden revenue expected next year, the Abu Dhabi National Oil Co. (ADNOC) subsidiary said in a press release Tuesday.

“The acquisition of these premium jack-up rigs will support one of our major customers, ADNOC Offshore, with its drilling and completion services requirements, as it delivers accelerated production capacity”, ADNOC drilling chief executive Abdulrahman Abdulla Al-Seiari said in the announcement.

“These rigs further cement our position as one of the world’s largest offshore jack-up rig fleet owners and supports [sic] our plan to grow our overall fleet to 142 owned rigs by 2024”.

ADNOC Drilling’s fleet had 115 owned rigs as of March, from 95 when it listed on the Abu Dhabi Securities Exchange October 2021, it said in the media statement.

“The acquisition is part of ADNOC Drilling’s fleet expansion and growth strategy, which is a key enabler of ADNOC’s accelerated production capacity growth to meet rising global energy demand”, the announcement stated.

ADNOC Drilling earlier announced a $75-million agreement to buy six newbuild hybrid engine land rigs from Dubai-based Honghua Golden Coast Equipment FZE. The 750HP Fast Desert Moving drilling units will be successively delivered from the 2024 second quarter, with all expected to contribute to revenue by 2025, according to ADNOC Drilling’s announcement May 24.

“With this new award, and following an announcement in March detailing an agreement for 10 newbuild hybrid power rigs, ADNOC Drilling has ordered a total of 16 newbuild hybrid power land rigs year-to-date”, the May 24 release said.

ADNOC Drilling collected $219 million in net earnings for January-March 2023, up 25 percent from the corresponding 2022 quarter but down six percent against the prior three-month period.

“Revenue was significantly higher than in the prior year, as a result of eight new land rigs entering the operational fleet in the second half of 2022”, its earnings report May 11 said.

ADNOC Drilling in that report maintained a projected net profit of $0.85-1 billion for 2023, with an expected capital expenditure of $1.3-1.75 billion. 

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