ADNOC Drilling Firm PJSC introduced not too long ago that it has signed a $75 million settlement for the acquisition of six newbuild hybrid energy land rigs.
The rigs will progressively enter the fleet from the second quarter of 2024, “with partial income and EBITDA contribution from 2024 and full yr contribution from all rigs in 2025”, ADNOC Drilling outlined. Honghua Golden Coast will construct the rigs, ADNOC Drilling revealed.
In its announcement, ADNOC Drilling highlighted that it has ordered a complete of 16 newbuild hybrid energy land rigs thus far in 2023. All of those are a part of the medium-term steering to get to an owned rig depend of 142 by the tip of 2024, the corporate famous.
In accordance with its web site, ADNOC Drilling’s rig fleet has grown fourfold in 22 years. It at present 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 corporate’s website exhibits. ADNOC Drilling has 74 land rigs, 31 offshore rigs, and 10 island rigs, its website highlights.
“As we implement our daring fleet growth plan, we’re working to make sure that development comes with the supply of our decarbonization commitments,” Abdulrahman Abdullah Al Seiari, the Chief Govt Officer of ADNOC Drilling, stated in an organization assertion.
“The sixteen newbuild hybrid rigs ordered thus far this yr are central to ADNOC Drilling’s rigorous decarbonization technique and our dedication to assist ADNOC’s goal to cut back greenhouse fuel depth by 25 % by 2030, in addition to the UAE Internet Zero by 2050 strategic initiative,” he added.
The rigs use a high-capacity battery and engine automation in parallel with conventional diesel mills, ADNOC Drilling outlined within the announcement. The hybrid energy know-how system shops vitality in its batteries to make use of when there’s a want for steady energy or to offer instantaneous further energy when there is a rise in demand, lowering a rig’s greenhouse fuel emissions by as much as 15 % in comparison with a conventional rig, the corporate famous.
Again in March this yr, ADNOC Drilling introduced that it had signed an settlement to buy ten newbuild hybrid energy land drilling rigs for a complete of $252 million.
In its March announcement, ADNOC Drilling famous that the brand new rigs had been central to rising its operational onshore capability and a direct response to ADNOC’s accelerated manufacturing capability targets. The corporate acknowledged on the time that it’s a key enabler of ADNOC’s accelerated manufacturing capability targets of 5 million barrels of decrease carbon depth crude per day by 2027 and attaining fuel self-sufficiency for the UAE.
“That is yet one more thrilling step for ADNOC Drilling – these new rigs contribute to the capability required to fulfill our clients’ expectations of most vitality with minimal emissions,” Al Seiari stated in an organization assertion in March.
“As our development trajectory accelerates and we proceed to construct our capability and capabilities to drive shareholder returns, our dedication to the decarbonization of our operations stays basic,’’ he added.
In December final yr, ADNOC Drilling introduced that it had signed an settlement to accumulate a further two “premium high-specification” Gusto MSC CJ46-X100-D design offshore jack-up drilling items. These rigs had a mixed value of $200 million, the corporate highlighted on the time.
In November 2022, ADNOC Drilling revealed that it had signed an settlement to accumulate three “model new high-specification” offshore jack-up drilling items. The rigs had a mixed value of $320 million, ADNOC Drilling identified.
Final month, ADNOC Drilling introduced “sturdy” first quarter 2023 yr on yr earnings development, which it stated was pushed by an “accelerated rig fleet and repair providing growth”.
The corporate highlighted in its first quarter outcomes assertion that its internet revenue elevated by 25 % yr on yr, “supported by elevated exercise coupled with improved operational efficiencies”, and that its income development of 19 % yr on yr was “enabled by new rigs getting into the operational fleet in second half of 2022”.
ADNOC Drilling reported internet revenue of $219 million within the first quarter of this yr, in comparison with internet revenue of $175 million within the first quarter of 2022, and income of $716 million within the first quarter of 2023, in comparison with income of $601 million within the first quarter of final yr.
“Our first quarter outcomes are notably pleasing as they clearly exhibit the efficient execution of our technique, to develop earnings by increasing our fleet and our providing, for the advantage of our clients and our shareholders,” Al Seiari stated in ADNOC Drilling’s first quarter outcomes assertion.
“To maximise worth for shareholders now and into the longer term, we are going to proceed to safe high-quality, long-term contracts that supply very good future earnings visibility, in addition to safety in opposition to market volatility,” he added.
“On the similar time, we are going to preserve our give attention to operational excellence and sustainable operations, in addition to capitalize on our distinctive place inside the market as we stay firmly on monitor to ship our 2023 steering,” Al Seiari continued.
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