We benefit from a unique and long-standing relationship with ADNOC, with ADNOC upstream operating companies procuring rig services from us based on agreed contractual terms.
We have an attractive financial profile with leading and resilient profitability margins, and we believe we are well positioned to achieve strong growth in both drilling and integrated drilling activities.
We have an almost 50-year track record of strong operational performance, with an extensive footprint and well-developed drilling infrastructure in the UAE. This includes a high quality and well-maintained fleet whilst also leveraging smart drilling techniques and engineering solutions, building our capabilities so we can strive to be even more cost efficient as we drill more wells.
We are committed to the environment, and to act as a responsible corporate citizen, and to contribute towards ADNOC’s sustainability goals which align with the UN Sustainable Development Goals.
Our successful journey has been made possible by our committed, highly experienced people, deep engineering expertise, and homegrown leadership, underpinning the economic and social contribution that we have made and continue to make.
Our future is as a stable, performance-driven, market resilient and cost-focused, organization. We drive operational efficiencies and technology and optimize development cost, creating more value as we grow.
We continue to build on our competitive position as a responsible and sustainable operator, and relentlessly push for efficiency and operational excellence while maintaining a firm focus on safety, environment, governance, empowering our people, and utilizing advanced technologies.
This will allow us to deliver even greater value to ADNOC Group, our partners and investors by efficiently delivering wells that contribute to ADNOC Group’s leading position as one of the largest and lowest-cost oil producers in the world.
Our recent transformation into an integrated drilling services provider has enabled us to move beyond our traditional domestic operations. We have been able to enter into new markets with a competitive cost base compared to our competitors and an improved service range in comparison to other traditional drilling services providers in the market.
Capitalize on ADNOC's plans to increase crude oil production capacity by 25% to 5 million barrels per day by 2030 from 4 million barrels per day in 2020, achieve UAE gas self-sufficiency, and produce 1 billion cubic feet per day of unconventional gas.
Given our strong market position, industry-leading low-cost structure and long-standing relationship with our main shareholder, ADNOC, and the ADNOC Upstream Operating Companies, we believe we are well-positioned to benefit from a planned increase in drilling activity to meet ADNOC’s target of increasing crude oil production capacity to 5 million barrels per day by 2030.
Additionally, ADNOC is currently unlocking potential unconventional gas resources as part of its integrated gas strategy in line with the UAE's objective to become gas self-sufficient. In November 2019, the then Supreme Petroleum Council (now replaced by the Supreme Council for Financial and Economic Affairs) announced the discovery of 160 trillion standard cubic feet of recoverable unconventional gas resources, offering the potential to fuel the UAE with gas for future years.
Become a regional leader in unconventional and biogenic development
The transformation into an integrated drilling service provider forms part of a wider strategy to become a regional leader in unconventional drilling, biogenic wells development, expand outside of the UAE in the future, and move towards more integrated drilling services and oil field services. We aim to have 20 rigs by 2030 performing unconventional drilling and contribute to biogenic development. Biogenic gas characteristically occurs at a shallow depth and in high quality, which makes this gas economically attractive for production. We believe this will open up additional revenue streams for us and will lead to unlocking additional natural resources in the UAE.
Goal of achieving operation efficiency by optimizing well duration
We intend to continue focusing on increasing our operational efficiency by optimizing well duration with a targeted 5% to 10% year-on-year improvement. This focus is intended to enable us to develop and maintain long-term customer relationships and maximize the utilization of our fleet. The added project management and oil field services capabilities acquired as part of the strategic alliance with Baker Hughes, in addition to our existing in-house rig rental and rig management capabilities, are strong contributors to the optimization of well duration.
Launch a major rig fleet expansion program to support upstream growth plans
We believe there will be an increase in drilling activity over the coming years in light of ADNOC’s commitment to increase its crude oil production capacity by 25% to 5 million barrels per day by 2030. Additionally, as we plan to expand our business beyond the UAE and pursue business opportunities in the region, we expect there to be a need for rig fleet expansion to support our growth plans. Accordingly, we plan to expand our rig fleet over the course of the coming five to 10 years with a net addition of 23 rigs by 2030 to our 96 owned rigs. We believe the expansion of our rig fleet will enable us to increase our current scope of rig hire services, drilling and completion services and associated services, and also provide unconventional drilling and biogenic wells, which we believe will in turn lead to increased revenue and profitability.
Pursue business expansion outside Abu Dhabi for rigs and services
Our recent transformation into an integrated drilling services provider has enabled us to potentially become a regional drilling services provider and move beyond our traditional domestic operations. Our recent transformation as an integrated drilling services provider should enable us to enter into new markets with a competitive cost base compared to our competitors and an improved service range to other traditional drilling services providers in the market.
The current market forecast estimates 4% growth between 2020 and 2025 in onshore and offshore drilling operations, and oilfield services in the MENA region and oilfield services in the MENA region, which provides opportunities for us in the regional markets, which we believe will in turn enable us to grow further and expand our operations outside of the UAE.
Aim to achieve 100% HSE integrity
ADNOC’s “HSE Culture Transformation” program was launched to shift HSE policies to a foundational cultural value of which everyone in the organization can and should be a part. Our HSE performance is being continuously challenged, particularly as our operations expand and increase in complexity. To stay ahead and maintain focus on our goal of 100% HSE integrity, our aim is to embed a safety culture of empowerment, responsibility and accountability. We recognize the value and importance of the health and safety of our employees and other stakeholders as well as the protection of our environment. We have established a system for the management of the integrity of our assets. This is in full consonance with ADNOC’s code of practices, which recognizes the role of asset integrity is to prevent, mitigate and control consequences of any incident that could result in major integrity incidents affecting large populations of workforce, the environment or communities at large.