The Abu Dhabi National Oil Company (Adnoc) has announced that it has achieved cost savings of $2 billion over the past five years by leveraging advanced technologies and digitalisation to enhance drilling efficiencies and optimise operations.
In addition to advanced technologies, Adnoc unlocked the cost savings and efficiency gains by harnessing fully integrated drilling services (IDS) and innovative techniques to improve drilling performance and well economics through several initiatives.
A key enabler of the $2 billion cost savings is Adnoc’s Real Time Data Monitoring Centre (RTMC) which monitors up to 120 well sites simultaneously in real-time and is powered by Big Data from live and historical operations.
The RTMC collects information to track drilling performance and well delivery progress, enabling Adnoc to optimise drilling operations by reducing non-productive time and enhancing productivity.
By the end of 2019, the RTMC had facilitated a reduction in well duration by 30 per cent, providing cost savings of about $1 billion.
The savings underscore how Adnoc is delivering on its objectives of creating a more profitable upstream business and strengthening its position as a global leading low-cost producer of crude oil, as part of its 2030 strategy.
Adnoc Upstream Executive Director Yaser Saeed Almazrouei said: "The cost savings the Abu Dhabi group unlocked highlight how we are accelerating the use of advanced technologies, digitalisation and innovative drilling techniques to drive performance and reinforce our position as a leading provider of comprehensive drilling and well construction services while supporting our strategic objectives of creating a more profitable upstream business and maximising value for the UAE."
He was speaking at the 16th annual Rig Owners Seminar, which took place virtually. The event is organised by Adnoc Drilling, a subsidiary of Adnoc, in cooperation with DNV GL and held on the sidelines of the Abu Dhabi International Petroleum Exhibition and Conference (Adipec).
Adnoc Drilling has also delivered over 100 IDS, wells since 2018, achieving an efficiency improvement of more than 35 per cent, which resulted in over $170 million in savings.
This achievement followed the award to Baker Hughes of a five per cent share in Adnoc Drilling, transforming the company into a fully integrated drilling business that is capable of delivering start-to-finish drilling and well-construction services.
Adnoc’s expanded service offering also includes unconventional methods of extraction.
Adnoc Drilling CEO Abdulrahman Abdullah Al Seiari said: "The fact we have enabled substantial cost savings for Adnoc underlines our drive to enhance our capabilities and competitiveness."
"As a critical link in Adnoc’s upstream value chain, providing fully integrated drilling and associated services, we are reinforcing our performance to better support the delivery of the group's 2030 strategy," noted Al Seiari.
"As part of this effort, we strengthened our rig fleet and expanded our service offering as well as accelerated our adoption of technology which is enabling us to drill more wells in less time," he added.-TradeArabia News Service