Adnoc unlocks $2b in cost savings

Business Bureau,Gulf Today

The Abu Dhabi National Oil Company (Adnoc), announced on Thursday that it has achieved cost savings of $2 billion (Dhs7.36 billion) over the past five years by leveraging advanced technologies and digitalization to enhance drilling efficiencies and optimize operations.

In addition to advanced technologies, Adnoc unlocked the cost savings and efficiency gains by harnessing fully integrated drilling services (IDS) and innovative techniques to improve drilling performance and well economics through several initiatives.

The achievement is a testament to Adnoc’s ongoing strategic investments in digitization and state-of-the-art technologies to further enhance performance, maximize value and enable smart growth as part of its digital transformation.

A key enabler of the $2 billion cost savings is Adnoc’s Real Time Data Monitoring Center (RTMC) which monitors up to 120 well sites simultaneously in real-time and is powered by Big Data from live and historical operations. The RTMC collects information to track drilling performance and well delivery progress, enabling ADNOC to optimize drilling operations by reducing non-productive time and enhancing productivity.

By the end of 2019, the RTMC had facilitated a reduction in well duration by 30%, providing cost savings of about $1 billion (Dhs3.68 billion). The savings underscore how Adnoc is delivering on its objectives of creating a more profitable upstream business.

Yaser Saeed Almazrouei, Adnoc Upstream Executive Director, said: “The cost savings Adnoc unlocked highlight how we are accelerating the use of advanced technologies, digitalization and innovative drilling techniques to drive performance and reinforce our position as a leading provider of comprehensive drilling and well construction services while supporting our strategic objectives of creating a more profitable upstream business and maximizing value for the UAE.