ADNOC Drilling lands groundbreaking $1.7 billion deal to tap into UAE’s premium unconventional energy reserves

ADNOC Drilling Company PJSC has been awarded a $1.7 billion contract by ADNOC to provide drilling and associated services for the recovery of unconventional energy resources in Abu Dhabi. This contract will see Turnwell deliver 144 unconventional oil and gas wells, marking a significant step in the recovery of Abu Dhabi’s unconventional energy resources and underlining the UAE’s role in meeting the world’s growing demand for affordable and accessible energy.

To service the contract and explore future opportunities in unconventional resources, ADNOC Drilling has established a new company called Turnwell Industries LLC OPC. The company has also signed a term sheet to enter into a strategic partnership with industry leaders Schlumberger Middle East SA and Patterson-UTI International Holdings, Inc. This partnership will focus on unconventional drilling operations and leverage cutting-edge innovations in AI smart drilling design, completions engineering, and production solutions.

Abdulmunim Saif Al Kindy, ADNOC Upstream Executive Director and Vice Chairman of ADNOC Drilling, stated, “Our goal at ADNOC is to provide the energy and energy products that people depend on every day to power their lives and ensure a just, orderly, and equitable energy transition. This award will accelerate the development of Abu Dhabi’s world-class resources to meet the world’s growing demand for affordable, accessible energy.”

Abdulrahman Abdulla Al Seiari, CEO of ADNOC Drilling, added, “Abu Dhabi’s unconventional energy resources are among the world’s largest. This award for 144 wells is just the beginning and represents a transformational opportunity for ADNOC Drilling. It signifies a significant expansion of our operations and specialist capabilities, and to support this growth, we have set up a new company called Turnwell and signed a term sheet with SLB and Patterson-UTI for potential partnership and support with the latest technology and innovations in the unconventional energy drilling space.”

The joint venture with Alpha Dhabi, Enersol, will play a crucial role in providing scalable innovative technologies to support the development of unconventional energy resources in the Middle East region. This partnership will enable ADNOC Drilling to leverage its world-leading AI, digitization, and advanced technologies to contribute to responsible energy delivery.

This initial phase of unconventional energy development is expected to employ up to nine land rigs, with five already included in ADNOC Drilling’s fleet. The contract is set to start contributing to ADNOC Drilling’s revenue in the second half of the year, with significant potential upside in the mid to long-term.

Unconventional energy resources refer to oil and gas reserves trapped in subsurface reservoirs that require advanced technology and processes to unlock. Abu Dhabi holds an estimated 220 billion barrels of unconventional oil and 460 TCF of unconventional gas, presenting a significant opportunity for production comparable to some of the most abundant unconventional energy resources in the U.S.

The partnership with industry leaders SLB and Patterson-UTI will bring extensive experience and expertise in unconventional oil and gas recovery to support ADNOC Drilling’s efforts in developing Abu Dhabi’s unconventional energy resources. This strategic collaboration will further solidify ADNOC Drilling’s leadership in the regional market and provide a strong new revenue stream for the company.