Adnoc achieved $2bn in savings from drilling efficiencies

Implementation of digital tools such as a real time data monitoring centre have driven reductions in overheads

Abu Dhabi, United Arab Emirates - Machinery used for drilling oil at the ADNOC headquarters, on February 25, 2018. (Khushnum Bhandari/ The National)

Abu Dhabi National Oil Company achieved cost savings of $2 billion by enhancing drilling efficiencies over the past five years, the company said.

The implementation of digital tools such as a real time data monitoring centre, which monitors 120 well sites, have driven reductions in overheads.

The centre lowered well duration by 30 per cent leading to cost savings of around $1bn.

“The cost savings Adnoc unlocked highlight how we are accelerating the use of advanced technologies, digitalisation and innovative drilling techniques to drive performance and reinforce our position as a leading provider of comprehensive drilling and well construction services,” said Adnoc upstream executive director Yaser Almazrouei.

The drilling subsidiary delivered more than 100 integrated drilling services wells since 2018, registering efficiency gains of more than 35 per cent, resulting in $170m in savings.

Adnoc plans to grow its conventional drilling activity 40 per cent by 2025 and substantially ramp up the number of its unconventional wells, as it targets an increase in oil production capacity to 5 million barrels per day by the end by 2030.

Adnoc Drilling has a partnership with the US oil services provider Baker Hughes. In 2018, Baker Hughes took a 5 per cent stake in Adnoc Drilling, paying Dh2.02bn.

Baker Hughes announced last week that it is moving the headquarters of its Surface Pressure Control Projects business to Abu Dhabi from Houston, Texas. The move follows on from its decision to open a wellheads facility in Abu Dhabi last year.