Abu Dhabi National Oil Co.'s (ADNOC) drilling arm has landed a significant five-year contract valued at $1.63bn (AED5.99bn) from sister company ADNOC Offshore.

ADNOC Drilling confirmed the award in a press release, noting that it covers the provision of crucial integrated drilling services (IDS) for offshore fields.

The scope encompasses directional drilling, management of drilling fluids, cementing operations, wireline logging and tubular running services, complemented by advanced engineering and technical support. These integrated capabilities are deemed essential for executing complex offshore drilling programmes, particularly for extended reach wells designed to maximise contact with hydrocarbon reservoirs.

This award highlights ADNOC Drilling's strong position to benefit from its parent firm’s expansion, leveraging its expanding capabilities as a provider of sophisticated, integrated energy services across the region.

ADNOC Drilling CEO Abdulrahman Abdulla Al Seiari said: “Our [integrated drilling services (IDS)] offering delivers superior value and innovation, enabling us to play a pivotal role in reshaping the future of energy services in the region.”

The long-term nature of the contract provides significant financial predictability. he said: “This five-year award is a strong reflection of ADNOC Drilling's long-term contracting model, which provides revenue visibility and stability over the contract period,” Al Sejari said.

He linked this to financial discipline, noting: “It aligns with our disciplined approach to building a resilient business foundation, capable of generating consistent cash flow and supporting sustainable shareholder returns through the cycle”.

The contract win provides a substantial boost to ADNOC Drilling’s rapidly growing oilfield services division. This segment represents a key element of the company's strategy to diversify its revenue streams beyond traditional rig provision and enhance overall business resilience against oil market volatility. ADNOC Drilling confirmed the deal's anticipated economic impact is already factored into its financial guidance for 2025 and 2026.

ADNOC Offshore CEO Tayba Al Hashemi described the drilling unit as a “key enabler on our accelerated journey to responsibly meet the world's growing energy needs”.

She added: “This contract gives us access to their cutting-edge capabilities and market-leading end-to-end services, which will maximise efficiency and generate significant value for our shareholders and the UAE.”

The agreement supports ADNOC Drilling's broader strategy of fleet expansion and service capability enhancement, increasingly incorporating advanced technologies and artificial intelligence, partly through ventures like its Enersol partnership.