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Adnoc Drilling bags $733m rigs contract for Zakum field

Drilling at Adnoc's Upper Zakum Concession. The new rigs will be the most advanced in the world, embracing AI, says the company Adnoc
Drilling at Adnoc's Upper Zakum Concession. The new rigs will be the most advanced in the world, embracing AI, says the company

Abu Dhabi-listed Adnoc Drilling has won a $733 million contract from Adnoc Offshore for three island drilling rigs to support operations at the offshore Zakum field.

The rigs will operate on existing and newly constructed innovative artificial islands at the Zakum field to drill and complete wells.

Hong Kong-headquartered Honghua Group (HH) will construct the rigs. Delivery of the rigs and commencement of operations is expected in 2026.

The rigs will be designed and built as part of a partnership between Adnoc Drilling and HH. The companies will also look to collaborate with AIQ, an Abu Dhabi-based artificial intelligence (AI) company.

These new island rigs will be the most advanced in the world, embracing AI, said Adnoc Drilling CEO Abdulrahman Abdulla Al Seiari.

The total capital expenditure expected to purchase the new island rigs is $210 million, with the first full-year revenue from the new rigs scheduled for 2027.

The full-year 2024 guidance of $200-250 million for the Island rig segment, which currently operates 10 island rigs, remains unchanged.

Adnoc Drilling’s rig fleet is expected to reach 148 by 2026.  The company has invested more than $2.2 billion in building one of the largest integrated drilling rig fleets in the world since the fourth quarter of 2021.

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