Adnoc Drilling forms Turnwell Industries for unconventional resources

Adnoc Drilling has been awarded a $1.7 billion contract by Adnoc to provide drilling and associated services for the recovery of unconventional energy resources.

To service the contract, and explore the considerable future opportunities in unconventional resources, Adnoc Drilling has incorporated a new company, Turnwell Industries.

The contract will see Turnwell deliver 144 unconventional oil and gas wells.

Adnoc Drilling has signed a term sheet to enter into a strategic partnership with Schlumberger Middle East (SLB) and Patterson-UTI International (Patterson-UTI) subject to signing definitive agreements and any necessary regulatory approvals. The new company will be primarily engaged in unconventional drilling operations.

Abdulmunim Al Kindy, Adnoc Upstream Executive Director and Vice Chairman of Adnoc Drilling, said:" 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. Adnoc Drilling is perfectly placed to responsibly develop these resources. Utilising partnerships, innovative AI, digitalisation and advanced technologies we will unlock Abu Dhabi’s abundant energy resources, to drive value for the UAE."

Abdulrahman Al Seiari, Adnoc Drilling CEO, said: "Abu Dhabi’s unconventional energy resources are among the world’s largest. This award, for 144 wells is just the beginning. It represents a transformational opportunity for Adnoc Drilling as the UAE’s world class unconventional energy resources will require many thousands more wells and we are in a prime position to deliver them."

This initial phase of unconventionals development is expected to employ up to nine land rigs, of which five are already included in Adnoc Drilling’s fleet as of December 31, 2023.

The contract is expected to start contributing to Adnoc Drilling’s revenue towards the second half of this year. The Company’s full-year 2024 and mid-term guidance only captures this initial award, creating significant potential upside to our business and financials in the mid to long-term.