Abu Dhabi's Adnoc Drilling wins contracts worth $314m from Kuwait Oil Company

The Abu Dhabi-based Adnoc Drilling secured two contracts worth up to $314 million from Kuwait Oil Company. The deals will see the UAE firm provide and operate offshore jack-up rigs in Kuwait's waters - its first offshore operations outside of the UAE. The contracts, awarded by Kuwait Petroleum Corporation's Higher Procurement Committee, run for four years, with an option to extend by a further year.

Adnoc Drilling will use one of its own rigs, while chartering a second. Operations are slated to commence in the fourth quarter of 2027.

Adnoc Drilling CEO Abdulla Al Messabi hailed the award as a significant milestone in the company's international growth strategy. The company aims to expand into markets such as Syria and is exploring potential deals to bolster its gas drilling business. Last year, Adnoc Drilling made strategic investments, acquiring an 80% stake in Oman's MB Petroleum Services and a 70% stake in SLB's land drilling rigs business in Kuwait and Oman.

The contracts are expected to contribute to Adnoc Drilling's first full-year earnings in 2028. The company sees these contracts as a testament to its expertise in complex offshore operations and aligns with its "Drill-to-Operate" strategy, which emphasizes strategic partnerships and new revenue streams for long-term growth. Kuwait is actively seeking international oil companies to assist in developing its offshore discoveries, with a goal to increase production capacity to four million barrels per day by 2035.