Skip to content Skip to Search
Skip navigation

Adnoc Drilling expects hybrid rigs to cut emissions

Backed by PIF, Ades Holding operates a fleet of 85 rigs in seven countries Pexels/Jan-Rune Smenes Reite
The Petroleum Association of Japan expects Dubai oil prices to stay in the range of $80-$95 a barrel for the next month
  • $4bn capex will put 140 rigs in operation
  • New rigs will run on hybrid power
  • Could reduce CO2 by 20%

Investment in hybrid power solutions could cut Adnoc Drilling’s CO2 emissions by as much as 20 percent.

The largest national driller for oil in the Middle East is seeking to slash its carbon intensity by a quarter by 2030.

The company is set to have more than 140 rigs in operation in the next 18 months as part of a $4 billion capex programme.

The subsidiary of Abu Dhabi National Oil Company is listed on the Abu Dhabi Exchange.

Adnoc Drilling’s chief financial officer Esa Ikaheimonen told AGBI the new rigs would be run on a hybrid model to achieve energy savings.

“In the short term, the hybrid solution with battery storage capability will reduce our emissions,” Ikaheimonen said.

“In the longer term, there is the possibility to connect them to the grid.”

Ikaheimonen said plans to implement battery storage solutions for all the company’s existing rigs have been piloted and they are currently looking into procurement models “to try and make that a little bit more affordable”.

“Not only new-build rigs will have hybrid power solutions, but increasingly our existing older rigs will have it as well,” he said.

Further plans to meet the carbon emissions targets include a pilot project to introduce solar power to Adnoc Drilling’s mobile camps.

Last month Adnoc announced that it had brought forward its deadline to reach net-zero carbon emissions by five years to 2045, citing its “industry-leading” progress on targets to date as the reason for the change. 

Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi, approved the state oil company’s plan to bring the net-zero deadline forward from 2050.

“We’re a really small part of the Adnoc group’s carbon emissions,” Ikaheimonen said.

“We’re never going to make it or break it for Adnoc group, but we need to do our share.”

He revealed that plans to meet the company’s own interim 2030 target have been costed and the sustainability component will be a “meaningful part” of its next five-year business plan.

“We are investing our own money in implementing these plans already, but in terms of the next five years and the bigger schemes, particularly the battery storage solution, we do need funding support from our clients and we’re confident we’ll get that from them,” he said.

In March Adnoc Drilling signed a deal with Abu Dhabi Future Energy Company, better known as Masdar, to become a drilling technical expert and advisor to support its deployment of geothermal energy around the world.

Geothermal energy harnesses the heat generated within the Earth’s core to provide a constant energy source, unlike solar or wind, which are intermittent in nature.

“We are a key player in enabling that because we basically drill the holes in order to allow our shareholder to re-inject the carbon back into the ground and store it there,” Ikaheimonen said.

Latest articles

The WakeCap system being used on a construction site

Aramco adopts heat-sensing construction helmets

Saudi Aramco is deploying advanced safety helmets equipped with heat stress sensors to protect workers on some of its construction sites, a critical concern in the Gulf region’s scorching climate. The helmets, developed by Dubai and Saudi Arabia-based construction tech startup WakeCap, utilise internet-of-things (IoT) technology that monitors worker attendance, location, and safety incidents in […]

KBR Iraq

US firm wins $46m contract to boost Iraq infrastructure 

US engineering giant KBR has won a five-year $46 million contract to support Iraq’s infrastructure development and future energy projects, including mega-projects. The company is expanding its presence in Iraq, establishing a new office in Baghdad and said it is also considering the creation of a design centre to enhance local engineering skills. Under the […]

The UAE attracted FDI inflows of $30.7 billion last year, a 35 percent year-on-year growth

UAE ranks second in global greenfield FDI projects

A 33 percent year-on-year surge in greenfield FDI projects in the UAE catapulted the Emirates up two places to the second spot after the US in 2023. There are now 1,323 greenfield FDI project announcements, state-run Wam news agency reported, citing the World Investment Report 2024. The UAE attracted FDI inflows of $30.7 billion last […]

People walk through the souk in Manama, Bahrain; FDI has been encouraged by the golden licence programme for investors

Bahrain attracts a record $6.8bn in foreign investment

Bahrain has set a new record by attracting $6.8 billion in foreign direct investment (FDI) in 2023. This is a 148 percent increase from the previous year’s $2.8 billion, according to the latest World Investment Report by the UN Conference on Trade and Development. Kuwait emerged as the top contributor, accounting for 36 percent of […]