Substantial revenue expected in 2024 with first full year revenue contribution from 2025
ADNOC Drilling Company recently confirmed the award of five 10-year contracts, totaling approximately US$ 2bn, in support of ADNOC Offshore’s growing drilling operations.
The contractual conditions, particularly the duration, were agreed with the client in light of the strength of the offshore jack-up market with higher day rates. The contracts supporting drilling operations across five fields in ADNOC’s offshore portfolio, are for the charter of five high-specification, premium jack-up rigs along with all required manpower and equipment.
The rigs will commence activity progressively from the end of 2023, with significant revenue expected in 2024 and first full-year revenue contribution from 2025. The revenue associated with these contracts is included in the Company’s full year 2023 and medium-term guidance.
“Long-term contracts like these are the backbone of our business model, providing a clear line of sight on future earnings. As we continue to grow our fleet, our shareholders will benefit from the opportunity to be directly invested in ADNOC’s accelerated production capacity growth,” stated Abdulrahman Abdulla Al Seiari, CEO, ADNOC Drilling,
The five rigs have been acquired as part of the Company’s fast-tracked rig fleet expansion program, designed to enable the delivery of ADNOC’s accelerated production capacity growth to responsibly meet rising global energy demand, a press communique concluded.
