ADNOC Drilling, an Abu Dhabi-based drilling company, has signed an agreement to purchase ten newbuild hybrid power land drilling rigs for a total of $252 million. These rigs will be an essential part of ADNOC Drilling’s decarbonization strategy, as the company aims to reduce its greenhouse gas intensity by 25% by 2030, as well as contribute to the UAE’s Net Zero by 2050 initiative.
The hybrid power technology used in these rigs incorporates a high capacity battery and engine automation in parallel with traditional diesel generators. This system stores energy in batteries to provide continuous or instant extra power, reducing the rig’s greenhouse gas emissions intensity by 10%-15%. Additionally, the rigs will have the provision to be connected to the electrical grid, further reducing emissions.
These new rigs will increase ADNOC Drilling’s operational onshore capacity and are a direct response to ADNOC’s accelerated production capacity targets. They are expected to progressively enter the fleet from the fourth quarter of this year, with partial revenue and EBITDA contribution from 2024 and full year annual contribution from all rigs in 2025.
ADNOC Drilling owns one of the world’s largest drilling and well completion fleets, and these ten newbuild hybrid power rigs will be built by China Petroleum Technology & Development Corporation in the People’s Republic of China.
