Adnoc generates $200m in cost savings from drilling efficiencies
Company also plans to switch 50 per cent of its wells under an integrated drilling services umbrella by 2022
Abu Dhabi National Oil Company generated close to $200 million in cost savings from efficiencies through introducing integrated drilling services in 2018, the company's executive director for upstream said.
The company achieved efficiency gains of 35 per cent and expects increases of up to 10 per cent year-on-year, Yasser Al Mazrouei told an online panel at CeraWeek, an annual event organised by IHS Markit.
The UAE, which accounts for 4.2 per cent of global output according to BP Statistical Review of World Energy, plans to raise its production capacity to 5 million barrels per day by 2030.
Its production capacity rose to just over 4 million bpd last year.
Adnoc would require "thousands" of new and workover wells to reach the 5 million bpd capacity mark, Mr Al Mazrouei said.
The company also plans to switch 50 per cent of its wells under an integrated drilling services umbrella by 2022, he said.
Services, equipment and even material procurement are consolidated in one contract under this type of arrangement.
Adnoc has been looking to drive greater efficiencies in drilling through digitalisation.
The company, through its drilling arm, also entered into a partnership with US oil services provider Baker Hughes.
In 2018, Baker Hughes took a 5 per cent stake in Adnoc Drilling, paying Dh2.02bn.
Last month, Adnoc said it generated $1.1bn in business value through the use of Big Data and analytics at its Thamama Centre, which oversees upstream operations.
The company accrued $2bn in cost savings over the past five years by using advanced technology and digitalisation to optimise its drilling operations.
Updated: March 3, 2021 03:48 AM