ADNOC Drilling Nets $806M for Three New Island Rigs for Zakum Offshore Field
May 5, 2025
ADNOC Drilling has been awarded a contract for three island rigs by ADNOC Offshore, valued approximately $806 million, to support expanding operations at the offshore Zakum development project.
The three rigs are in addition to three ordered in July 2024, under a contract valued $733 million at the time. ADNOC Drilling noted the capital expenditure for acquiring the new island rigs is expected to be broadly similar to that of last year's.
The new generation of island rigs, expected to gradually join the fleet between 2027 and 2028, will be developed through a strategic collaboration between ADNOC Drilling and Honghua Group (HH).
The partnership is formed specifically to embed the transformative power of AI, advanced digitalization and real-time analytics into rig design and operations. Leveraging real-time condition monitoring, performance optimization and predictive analytics, the rigs will generate actionable insights that drive higher operational efficiency, improved well delivery times and enhanced safety.
Designed to operate on ADNOC’s pioneering artificial islands – home to the world’s five longest wells, including a recent record-setting well at 53,000 feet – the rigs will be optimized for extended reach drilling (ERD).
Additionally, state-of-the-art walking capabilities will enable seamless movement between well slots without the need for rig dismantling, significantly improving uptime, reducing emissions and lowering operating costs.
The capital expenditure for acquiring these new island rigs is currently expected to be broadly similar to that of the three island rigs announced in July 2024.
“ADNOC Drilling is proud to be awarded this significant, long-term contract, marking another major milestone in our accelerated growth journey. These next generation island rigs, built with embedded AI, represent a leap forward in technology, enhancing safety, efficiency and performance.
“This award strengthens our position as a critical enabler of ADNOC’s production capacity targets, while delivering sustainable, high-quality returns for our shareholders well into 2038 and beyond,” said Abdulrahman Abdulla Al Seiari, ADNOC Drilling’s CEO.
