The company aims to strengthen its presence and tap into new opportunities
Abu Dhabi-listed, ADNOC Drilling is investing significantly in expanding its operations across the Middle East. As the largest national drilling company in the region by rig fleet size, ADNOC Drilling is poised to strengthen its presence and tap into new opportunities.
With the largest fleet of operational rigs to date. They have achieved historic levels of revenue, EBITDA, and net profit. The business released its financial results for the fourth quarter and full year ending on December 31, 2023. Reportedly, the net profit for the entire year climbed by 29% year over year to US$1.033 billion, indicating a 34% margin.
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The Vision for 2024
ADNOC Drilling looks ahead to 2024 with confidence, fueled by plans for further fleet expansion. The company aims to enhance its rigs and services network, positioning itself as a key player in the oil and gas sector within the Gulf Cooperation Council (GCC) countries.
Rig Acquisition and Investment
The company has allocated substantial resources for its expansion endeavors. ADNOC Drilling is set to spend $750-950 million to acquire 15 rigs this year on top of their current 129. These investments will bolster its capacity to efficiently serve clients across the Middle East.
Deploying Rigs Beyond the UAE
While most of ADNOC Drilling’s operational rigs currently serve its parent company, Abu Dhabi National Oil Company (ADNOC), the company has ambitious plans to deploy rigs beyond the United Arab Emirates (UAE). Accordingly, by the end of 2024, they expect to have adequate rigs available for projects outside the UAE.
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Tapping into Opportunities
ADNOC Drilling recognizes the immense potential within the GCC countries. Oil and gas production in this region is typically more cost-effective and environmentally friendly. The company is qualified to bid for rig supply contracts in Oman and actively seeks approval to participate in tenders in Saudi Arabia and Kuwait.
A Shift Toward Cleaner Energy
As global energy dynamics evolve, the expansion aligns with the broader industry trends. Middle Eastern states are gradually shifting toward cleaner energy sources, and the company aims to play a pivotal role in this transition.
Undoubtedly, with a robust fleet, qualified expertise, and a forward-thinking approach, ADNOC Drilling is well-positioned to shape the future of drilling and exploration in the region.
