Adnoc saves $200m as integrated drilling improves efficiency
Adnoc generated about $200 million in cost savings as integrated drilling services introduced in 2018 improved efficiency.
The company’s executive director for upstream operations Yasser Al Mazrouei told an online panel at CeraWeek, an annual event organised by IHS Markit, that Adnoc achieved efficiency gains of 35 per cent.
It expects yearly increases of up to 10 per cent.
The UAE – which accounts for 4.2 per cent of global output, according to the BP Statistical Review of World Energy – plans to raise its production capacity to 5 million barrels per day by 2030.
Its production capacity increased to more than 4 million bpd last year.
Adnoc would require thousands of new and workover wells to reach the capacity of 5 million bpd, Mr Al Mazrouei said.
The company also plans to put half of its wells under an integrated drilling services umbrella by 2022, he said.
Services, equipment and the procurement of materials are consolidated in one contract under such an arrangement.
Adnoc has been looking to use digitisation to achieve greater efficiency in drilling operations. The company entered into a partnership with US oil services provider Baker Hughes, which took a 5 per cent stake in Adnoc Drilling for Dh2.02bn in 2018.
Adnoc said last month that 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 digitisation to optimise drilling efficiency.
Upstream boss Yasser Al Mazrouei said half of Adnoc’s wells will use integrated drilling services by 2022