The drilling arm of Abu Dhabi National Oil Co. (ADNOC) has secured a significant contract valued at around $806mn from ADNOC Offshore to supply three technologically advanced island rigs. This award is aimed squarely at bolstering the ambitious expansion underway at the giant Upper Zakum offshore oilfield development, supplementing a prior order for three similar units placed in July 2024.

The deal underscores Abu Dhabi’s sustained push to enhance production capacity through cutting-edge technology. Abdulrahman Abdulla Al Seiari, CEO of ADNOC Drilling, described the long-term contract as “another major milestone in our accelerated growth journey.”

Quoted in a press release on the company’s website, he emphasised the integration of artificial intelligence (AI) into the newbuild rigs, labelling them a “leap forward in technology, enhancing safety, efficiency and performance.” Al Seiari positioned the award as strengthening the company’s role as a “critical enabler of ADNOC’s production capacity targets,” promising “sustainable, high-quality returns for our shareholders well into 2038 and beyond.”

These next-generation units, expected to enter service progressively between 2027 and 2028, are being developed via a strategic partnership between ADNOC Drilling and Honghua Group (HH). This collaboration focuses specifically on embedding AI, advanced digitalisation, and real-time analytics into rig operations. Features include predictive analytics and condition monitoring to drive efficiency gains, optimise well delivery times and improve safety protocols.

Designed for deployment on ADNOC’s innovative artificial islands – platforms which have supported record-breaking wells, including one reaching 53,000 feet (16,154 metres) – the rigs will be optimised for complex extended reach drilling (ERD). Furthermore, integrated “walking” capabilities will allow seamless movement between well slots without rig dismantling, promising substantial reductions in downtime, emissions and operating expenditure. Capital costs are projected to be broadly in line with the previous rig order.

Tayba Abdul Rahim Al Hashemi, CEO of ADNOC Offshore, said: “We are focused on unlocking maximum value from the resources in Abu Dhabi’s waters ... These advanced island rigs delivered by ADNOC Drilling will play a vital role in achieving our production capacity goals.”

The new rigs support the multi-billion dollar expansion of Upper Zakum, the world’s second-largest offshore oilfield, located 84 km from Abu Dhabi. ADNOC Offshore, in partnership with Japan Oil Development Co. (Jodco) and ExxonMobil, has committed roughly $30bn to lift the field’s output significantly, targeting an eventual capacity of 1.5mn barrels per day (bpd). This objective, known as UZ 1.5MMBD, is being engineered by Technip Energies,  which holds the pre-FEED and FEED services contracts.

The expansion builds upon earlier phases, including efforts to reach 1.2mn bpd (UZ 1.2MMBD). In mid-2024, UAE-based Target Engineering Construction Co. secured an $825mn EPC contract for surface facilities on four artificial islands (EPC-1), followed by a further award worth circa $500mn for additional structures (EPC-2). The overarching strategy aims to elevate production from a baseline of 640,000 bpd towards the ultimate 1.5mn bpd target.