Adnoc Drilling boosts its role in regional energy leadership

Adnoc Drilling Company announced on Thursday that it has received a letter of award for a $1.63 billion, five-year contract for Integrated Drilling Services (IDS) from Adnoc Offshore.

This landmark award reinforces Adnoc Drilling’s unique position within Adnoc Group and as the region’s leading provider of advanced, integrated energy services, reflects the strength of its strategy to expand its fleet, service offerings, and capabilities.

Abdulrahman Abdulla Al Seiari, Adnoc Drilling CEO, said, “We are immensely proud to secure this considerable award, which not only validates our strategic direction but also demonstrates the confidence Adnoc Offshore places in our capabilities.”

“Our IDS offering delivers superior value and innovation, enabling us to play a pivotal role in reshaping the future of energy services in the region. This milestone underscores our commitment to operational excellence, and positions Adnoc Drilling as the partner of choice in an increasingly dynamic and complex energy landscape.

This five-year award is a strong reflection of Adnoc Drilling’s long-term contracting model, which provides revenue visibility and stability over the contract period. It aligns wi th our disciplined approach to building a resilient business foundation, capable of generating consistent cash flow and supporting sustainable shareholder returns through the cycle.”

The contract covers the provision of directional drilling, drilling fluids, cementing, wireline logging, and tubular running services. The award incorporates advanced engineering and technical support for the effective delivery of extended reach and maximum reservoir wells offshore.

Tayba Al Hashemi, Adnoc Offshore CEO, said, “Adnoc Drilling is a key enabler on our accelerated journey to responsibly meet the world’s growing energy needs. This contract gives us access to their cutting-edge capabilities and market-leading end-to-end services, which will maximise efficiency and generate significant value for our shareholders and the UAE.”

This award is a clear endorsement of Adnoc Drilling’s continued commitment to operational excellence, innovation, and the adoption of artificial technology (AI) and advanced technologies, underlining its ability to deliver end-to-end solutions that optimise performance while unlocking significant value for its clients.

This contract supports the growing Oilfield Services segment, and its economic impact is already included in the current 2025 and 2026 guidance, underpinning the visibility of Adnoc Drilling’s business model and in support for the Company’s financial targets.

As the demand for advanced, high-performance energy solutions increases, the growth of Adnoc Drilling’s IDS portfolio is a cornerstone of the Company’s strategy - enhancing fleet utilisation, diversifying revenue streams, and accelerating sustainable and long-term growth and returns.

The IDS business brings a relatively new and fast-growing revenue stream to Adnoc Drilling, significantly enhancing business resilience and future-proofing the company through the cycles. With its leading market position in IDS in the UAE, Adnoc Drilling is uniquely positioned to capture further growth and deepen its leadership in this high-potential segment.

Adnoc Drilling is leading the transformation of the energy services sector by adopting AI, integrating advanced technologies with deep industry knowledge and expertise with a relentless focus on operational efficiency.

Its joint venture Enersol, a pioneering AI-centric investment platform, is at the forefront of this new energy technology era as it builds a scalable, future-facing AI and advanced technology ecosystem that is uniquely positioned to empower its portfolio of companies to lead in innovation, maximise synergies, and ultimately generate added value.

Earlier Adnoc Drilling Company confirmed shareholders’ approval of all agenda items at its Annual General Meeting (AGM), including the distribution of its final cash dividend payment for the year ended 31st December 2024. Adnoc Drilling’s full-year revenue increased significantly to a record $4.034 billion, rising by 32 per cent year-on-year and its full-year Ebitda reached a record high of $2.01 billion, up 36 per cent year-on-year.

Since the Company’s listing on ADX in 2021, its net profit for the full year has more than doubled, culminating in $1.30 billion in 2024.

By leveraging the strength of its balance sheet, the Company remains committed to pursuing smart growth, seizing new opportunities and maximising shareholder value over the long term.

Abdulrahman Abdulla Al Seiari, Adnoc Drilling CEO, said, “Our record-breaking financial performance and dividend reflect Adnoc Drilling’s strong momentum as the world’s fastest growing energy services company. With a 10 per cent dividend increase to $788 million in 2024 and a commitment to further increase it by at least 10 per cent in 2025 and beyond, we continue to deliver exceptional value to our shareholders while investing in the future.