Onshore
$1,453m
Offshore Jackups
$611m
Offshore Island
$204m
Oil field services
$405m
Enabling Growth. Unlocking Energy. Driving Sustainability.
Annual Report 2022
At a glance
ADNOC Drilling is one of the largest drilling and completion services companies in the world.
We operate responsibly on land, at sea and on ADNOC’s unique artificial islands off Abu Dhabi’s coastline, delivering start-to-finish well drilling and construction across both conventional and unconventional reservoirs. We have the largest fleet in the Middle East, of 115 owned rigs and a dedicated workforce of engineers, specialists and technicians.
115
Owned rigs
6,598
Direct workforce
10,000+
Wells delivered
50+
Years of experience
Tap on values to view more
Owned rigs
115+
Direct workforce
6,598+
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Wells delivered
10,000+
Years of experience
50+
Who we are
Our purpose
To continue to build on our competitive position as a responsible and sustainable service provider, to relentlessly push for efficiency and operational excellence using advanced technologies, while maintaining a firm focus on safety, environment and empowering our people.
Our vision
We enable ADNOC to unlock the UAE’s oil and gas resources for the benefit of our people, communities, partners, shareholders, customers and our nation.
Our mission
We drive operational efficiencies by leveraging innovative technology, smart drilling techniques and engineering solutions to consistently capture efficiencies as we drill more wells, creating more value as we grow.
Our values
CollaborativeWe work in close collaboration with our partners and customers, leveraging collective strengths to deliver mutually beneficial results.
ProgressiveWe harness the UAE’s spirit of innovation to ensure that our business remains at the forefront of the global energy industry.
ResponsibleWe are committed to identifying ways that can make a difference to our community while maintaining an unwavering commitment to health, safety, and the environment in which we operate.
EfficientWe are a performance-driven company, dedicated to maximizing the value of energy resources for the benefit of our people, our communities, our partners and customers and our nation.
RespectfulWe encourage a culture of inclusivity and mutual respect, and always operate to the highest professional and ethical standards.
Abdulrahman Abdulla Al Seiari
CEO
As we celebrated our first year as a publicly listed company, ADNOC Drilling delivered on its strategy of accelerating growth and profitability.
I am proud that we exceeded our ambitious targets, driving revenue and materially expanding our drilling rig fleet. Positioned to enable ADNOC’s accelerated growth targets, the best is yet to come – for our employees, customers and shareholders.
H.E. Dr. Sultan Ahmed Al Jaber
Chairman
In ADNOC Drilling’s first full year as a publicly listed company, the business significantly grew, achieving double-digit growth that was materially ahead of expectations.
These outstanding results would not have been possible without the dedicated people at every level of ADNOC Drilling who continue to deliver safe and efficient operations ensuring exceptional results for shareholders and the UAE. The Company is well positioned to continue to innovate, responsibly grow and capture greater value in 2023.
Esa Ikaheimonen
Chief Financial Officer
ADNOC Drilling delivered a 33% increase in net income in 2022, driven by 18% year-on-year revenue growth, providing a solid foundation for continued growth in 2023.
Reflecting the accelerated growth program, capital expenditure continued to increase to nearly double from the previous year, as we accelerated our rig acquisition program and continued the OFS expansion.
Highlights
Strong operational performance supporting healthy financial results.
Financial
33%
Net income growth for FY2022
$2,673m
FY2022 revenue
$942m
Capital investment during the twelve month period
Operational
620
Wells delivered
95%
Rigs availability
39%
Integrated Drilling Services share
2022 revenue
$2,000m
Our story
For more than 50 years, ADNOC Drilling has enabled ADNOC’s growth, becoming one of the largest drilling fleets in the world.
National Drilling Company was created by Emiri Decree as the first fully-owned ADNOC Group company
Known as the National Drilling Company (NDC) until 2017, the company was established to drill wells to enable ADNOC to unlock the UAE’s vast reserves of oil and gas for the benefit of the nation.
First rig acquisition
ADNOC Drilling’s first rig, AD-1, today stands outside of ADNOC Group’s headquarters on the Abu Dhabi Corniche.
First offshore rig acquisition
The 1970s and 1980s saw robust expansion as the company added more rigs to its growing fleet to deliver both onshore and offshore wells.
ADNOC Drilling hired its first female as a personnel supervisor
Today, there are 165 female employees, including the Company’s first female VP in Operations and 17 recently recruited engineers slated for leadership roles in operations.
Launch of 20-year water exploration survey project in partnership with U.S. Geological Survey
ADNOC Drilling enabled crucial information collection about the UAE’s ground water in the Al Ain region.
National leadership
ADNOC Drilling intensified focus on advancing Emiratis for leadership roles. Today, Emiratis hold more than 90% of operational senior positions across the company.
First 4 state-of-the-art cluster well drilling rigs acquisition
The first in the region, mechanized cluster rigs were acquired to meet the drilling requirement of 180 wells at ADNOC’s artificial islands.
First artificial island drilling
Up to 200 wells can be drilled from each artificial island, compared to 10 from a jack-up rig.
Evolution of service offering
With a fleet of 29 rigs, ADNOC Drilling began to provide electric well logging services to support drilling operations.
Drilling Training Center begins operations in Al Dhafra
Specialized training modules prepare talented young Emiratis for a rewarding drilling career. By the end of 2021, more than 1,000 Emiratis had graduated from the Drilling Training Center.
Transition into to a full IDS service provider
A strategic partnership with global industry leader Baker Hughes propelled ADNOC Drilling into the role of a start-to-finish well services and completion company, bringing new efficiencies to customers.
Launch of Technology and Remote Operations Center (TROC).
24/7 direct feed to rig site control cabins offers OFS technical assistance in directional drilling, geo-steering and logging activities.
Completion of first IDS well
ADNOC Drilling delivered its first IDS well to ADNOC Onshore, ahead of plan and within budget.
Records are broken
At 45,000 feet, ADNOC Drilling delivered the Middle East’s longest well while recording a record-breaking 21 years of Lost Time Incident (LTI)-free operations at its land rig AD-17.
Public listing
In the largest ever listing at the Abu Dhabi Securities Exchange (ADX), ADNOC Drilling became a publicly listed company, raising $1.1 billion from an 11% share offering.
H&P becomes cornerstone investor.
Drilling industry leader Helmerich & Payne (H&P) became a cornerstone investor in the IPO, launching a strategic partnership to enable efficiencies in the onshore segment that will benefit both companies, as well as our customers and shareholders.
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Executing on our IPO strategy
A year of delivering on our promises with record profitability, with outstanding operational growth, driving FY22 revenue to $2.67 billion, up 18% year-on-year.
Further fleet expansion.
The Company has expanded the rig fleet by more than 350%, including the acquisition of 17 UAE-built offshore and onshore rigs. Today, ADNOC Drilling has 115 rigs; more will join the fleet in 2023 and beyond.
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At a glance
ADNOC Drilling’s operations are spread across the UAE and organized into 4 operational segments: Onshore, Offshore Jack-ups, Offshore Island and Oil Field Services (OFS).
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1
What we do
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Onshore Drilling
Our Onshore fleet consists of 74 land rigs, of varying specifications, including several high–capacity workover rigs. Our rigs drill a wide range of oil and gas wells and handle challenging drilling programs effectively and efficiently.
Offshore Jack-up
Offshore Jack–up Our offshore fleet of 31 up rigs and one barge are outfitted with high–specification equipment and are capable of drilling wells to maximum depths ranging from 18,000 to 30,000 feet and in maximum water depths ranging from 110 to 350 feet.
Offshore Island
We own and operate a fleet of 10 island rigs, seven of which are less than five years old. To enable drilling on artificial islands, we acquired state–of–the–art island rigs with integrated low–pressure hydraulic walking systems that allow our island rigs to move between well sites without the need to dismantle them.
Oilfield Services
Our Oilfield Services (OFS) division offers comprehensive market–leading drilling and well construction services that span the entire drilling value chain. OFS has facilitated record–breaking performance and efficiency levels and has helped to create savings in well time and cost.
528
Wells drilled
65
Wells drilled
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27
Wells drilled
40
IDS rigs
528
Wells drilled
What we do
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Onshore Drilling
Our Onshore fleet consists of 74 land rigs, of varying specifications, including several high–capacity workover rigs. Our rigs drill a wide range of oil and gas wells and handle challenging drilling programs effectively and efficiently.
65
Wells drilled
What we do
02
/ 04
Offshore Jack-up
Offshore Jack–up Our offshore fleet of 31 up rigs and one barge are outfitted with high–specification equipment and are capable of drilling wells to maximum depths ranging from 18,000 to 30,000 feet and in maximum water depths ranging from 110 to 350 feet.
27
Wells drilled
What we do
03
/ 04
Offshore Island
We own and operate a fleet of 10 island rigs, seven of which are less than five years old. To enable drilling on artificial islands, we acquired state–of–the–art island rigs with integrated low–pressure hydraulic walking systems that allow our island rigs to move between well sites without the need to dismantle them.
40
IDS rigs
What we do
04
/ 04
Oilfield Services
Our Oilfield Services (OFS) division offers comprehensive market–leading drilling and well construction services that span the entire drilling value chain. OFS has facilitated record–breaking performance and efficiency levels and has helped to create savings in well time and cost.
Our business model
ADNOC Drilling enables ADNOC to reliably and efficiently unlock the UAE’s oil and gas resources in the service of the nation.
What we bring to the table
Robust balance sheet, sustainable cash flow generation and revenue pipeline
Diverse and committed workforce
Key enabler of ADNOC’s expansion plans
Well-maintained assets
World-class operational excellence
What we do
Onshore drilling
Offshore drilling – Jack-up
Offshore drilling – Island
Oilfield Services
ShareholdersHigh returns, limited risk, superior financial performance, rewarding dividend policy
PartnersAlliances with industry leading service Providers, Baker Hughes and Helmerich & Payne (H&P)
CustomersADNOC Upstream operating companies and concession block holders
EmployeesInclusive culture and diverse workforce, local talent development
CommunityStrong social responsibility, local community development
Our strategic pillars
Capitalize on ADNOC’s increasing oil and gas production capacity.
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 2027 and its integrated gas strategy to unlock the potential of unconventional gas resources in line with the UAE’s objective to become gas self–sufficient.
2022 achievementsThrough the strengthening of our relationships and partnerships with Baker Hughes and H&P, eight new rigs became fully operational by the end of the year.
We also performed Integrated Drilling Services (IDS) on 40 rigs, representing 39% market share. We were also awarded $1.3 billion in contracts by ADNOC for the Hail and Ghasha Development Project, to provide IDS and fluids for up to ten years.
Future goalsOur role as the key enabler of ADNOC’s acceleration of the production capacity target has led the Company to bring forward our owned rig count of 127 by 2030 to 142 by the end of 2024.
Launch a major rig fleet expansion program to support ADNOC’s Upstream growth plans.
We believe there will be an increase in drilling activity over the coming years considering ADNOC’s commitment to increase its crude oil production capacity to 5 million barrels per day by 2027. Additionally, as we plan to expand our business beyond the UAE and pursue business opportunities in the region, we expect a need for rig fleet expansion to support growth plans.
2022 achievementsWe now own and operate 115 fit-for-purpose rigs, up from 99 in 2021. Given our accelerated activity, we expect the fleet number to climb to 142 rigs by 2024 compared to prior guidance of 127 rigs by 2030.
Future goalsPulling forward our growth plans will lead to an additional 30 rigs joining the fleet, including three expected retirements over the period, for a total of 21 land rigs and 9 offshore jack-ups. These rigs will enable us to increase our current scope of rig hire services, drilling and completion services and associated services to provide drilling of unconventional wells.
Become a regional leader in unconventional drilling.
The transformation into an integrated drilling service provider forms part of a wider strategy to become a regional leader in unconventional drilling development, expand outside of the UAE, and move toward more integrated drilling services and oilfield services.
2022 achievementsWe continued to invest in the latest industry innovations to enhance our fracking operations, delivering a total of 64 fracking stages (+10% vs. 2021) and increased our market share from 58% to 100%.
Future goalsWe aim to have 20 rigs performing unconventional drilling by the end of the decade.
Achieve operating efficiency by optimizing well duration.
Increased operational efficiency will enable us to develop and maintain long-term customer relationships and maximize the utilization of our fleet. The added project management and oilfield 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.
2022 achievementsWe completed the longest extended reach well at 50,000 feet using unparalleled expertise and pioneering drilling technology from artificial islands. This approach leads to cost efficiencies as well as greater access to reserves without additional costly infrastructure and a reduction in environmental footprint.
Future goalsWe will continue to focus on increased operational efficiency by optimizing well duration with a targeted 5% to 10% year-on-year improvement.
Pursue business expansion beyond Abu Dhabi’s borders.
ADNOC Drilling’s recent transformation into an IDS provider positions us as a regional drilling services provider. In this role, we expect to enter new markets with a competitive cost base compared to our competitors and an improved service range compared to other traditional drilling services providers in the market.
2022 achievements2022 focused on expanding within Abu Dhabi and fulfilling existing contracts.
We also continued to discuss and explore expansion opportunities outside Abu Dhabi.
Future goalsWe will proactively continue to explore new opportunities outside Abu Dhabi, particularly in light of the current market forecasts of growth by 2025 in onshore and offshore drilling operations and oilfield services in the MENA region.
Achieve 100% HSE and asset integrity.
Our top priority is to protect our people, our assets and the environment. Our HSE performance is continuously challenged, particularly as our operations expand and increase in complexity. 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.
2022 achievementsWe have established an ongoing system for the management of the integrity of our assets and regular audits and controls. We delivered our lowest ever Total Recordable Injury rate of 0.60 as a result of our proactive HSE culture transformation journey, consisting of HSE academies delivering Human Performance Leadership training for early intervention and encouraging near miss reporting. HSE communication, reporting, audit programs, inspection and controls have also contributed to our safety record.
Future goalsOur ongoing mission of 100% HSE and asset integrity sits at the heart of what we do. We will continue to embed a Goal Zero safety strategy, and culture of empowerment, responsibility, and accountability for all our employees.
Capitalize
Capitalize on ADNOC’s increasing oil and gas production capacity.
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 2027 and its integrated gas strategy to unlock the potential of unconventional gas resources in line with the UAE’s objective to become gas self-sufficient.
2022 achievementsThrough the strengthening of our relationships and partnerships with Baker Hughes and H&P, eight new rigs became fully operational by the end of the year.
We also performed Integrated Drilling Services (IDS) on 40 rigs, representing 39% market share. We were also awarded $1.3 billion in contracts by ADNOC for the Hail and Ghasha Development Project, to provide IDS and fluids for up to ten years.
Future goalsOur role as the key enabler of ADNOC’s acceleration of the production capacity target has led the Company to bring forward our owned rig count of 127 by 2030 to 142 by the end of 2024.
Launch
Launch a major rig fleet expansion program to support ADNOC’s Upstream growth plans.
We believe there will be an increase in drilling activity over the coming years considering ADNOC’s commitment to increase its crude oil production capacity to 5 million barrels per day by 2027. Additionally, as we plan to expand our business beyond the UAE and pursue business opportunities in the region, we expect a need for rig fleet expansion to support growth plans.
2022 achievementsWe now own and operate 115 fit-for-purpose rigs, up from 99 in 2021. Given our accelerated activity, we expect the fleet number to climb to 142 rigs by 2024 compared to prior guidance of 127 rigs by 2030.
Future goalsPulling forward our growth plans will lead to an additional 30 rigs joining the fleet, including three expected retirements over the period, for a total of 21 land rigs and 9 offshore jack-ups. These rigs will enable us to increase our current scope of rig hire services, drilling and completion services and associated services to provide drilling of unconventional wells.
Become
Become a regional leader in unconventional drilling.
The transformation into an integrated drilling service provider forms part of a wider strategy to become a regional leader in unconventional drilling development, expand outside of the UAE, and move toward more integrated drilling services and oilfield services.
2022 achievementsWe continued to invest in the latest industry innovations to enhance our fracking operations, delivering a total of 64 fracking stages (+10% vs. 2021) and increased our market share from 58% to 100%.
Future goalsWe aim to have 20 rigs performing unconventional drilling by the end of the decade.
Achieve
Achieve operating efficiency by optimizing well duration.
Increased operational efficiency will enable us to develop and maintain long-term customer relationships and maximize the utilization of our fleet. The added project management and oilfield 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.
2022 achievementsWe completed the longest extended reach well at 50,000 feet using unparalleled expertise and pioneering drilling technology from artificial islands. This approach leads to cost efficiencies as well as greater access to reserves without additional costly infrastructure and a reduction in environmental footprint.
Future goalsWe will continue to focus on increased operational efficiency by optimizing well duration with a targeted 5% to 10% year-on-year improvement.
Persue
Pursue business expansion beyond Abu Dhabi’s borders.
ADNOC Drilling’s recent transformation into an IDS provider positions us as a regional drilling services provider. In this role, we expect to enter new markets with a competitive cost base compared to our competitors and an improved service range compared to other traditional drilling services providers in the market.
2022 achievements2022 focused on expanding within Abu Dhabi and fulfilling existing contracts.
We also continued to discuss and explore expansion opportunities outside Abu Dhabi.
Future goalsWe will proactively continue to explore new opportunities outside Abu Dhabi, particularly in light of the current market forecasts of growth by 2025 in onshore and offshore drilling operations and oilfield services in the MENA region.
Achieve
Achieve 100% HSE and asset integrity.
Our top priority is to protect our people, our assets and the environment. Our HSE performance is continuously challenged, particularly as our operations expand and increase in complexity. 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.
2022 achievementsWe have established an ongoing system for the management of the integrity of our assets and regular audits and controls. We delivered our lowest ever Total Recordable Injury rate of 0.60 as a result of our proactive HSE culture transformation journey, consisting of HSE academies delivering Human Performance Leadership training for early intervention and encouraging near miss reporting. HSE communication, reporting, audit programs, inspection and controls have also contributed to our safety record.
Future goalsOur ongoing mission of 100% HSE and asset integrity sits at the heart of what we do. We will continue to embed a Goal Zero safety strategy, and culture of empowerment, responsibility, and accountability for all our employees.
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Our case studies
Extended drilling reach
The ADNOC Drilling offshore island segment has led the way in delivering multiple wells from a single surface location. Drilling at the artificial islands advances efficiency by allowing more than 200 wells to be delivered from each island, instead of up to 10 from a conventional jack–up rig.
We have continued to innovate and deliver progressively longer wells for our customers. The technique to deliver these long, horizontal wells is called Extended Reach Drilling (ERD). An advanced form of directional, horizontal drilling, ERD comes with multiple benefits for the customer, including reduced well delivery time, reduced costs, and the associated reduced emissions and environmental impact.
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Our case studies
True teamwork advances efficiency and excellence
On eight new land rigs across Abu Dhabi, 20 operational leaders from across the U.S. supervise drilling and maintenance crews. Mentoring and coaching ADNOC Drilling crews, the men have come from U.S.-based Helmerich & Payne (H&P). For more than a year, they have been part of the ADNOC Drilling team, based in Abu Dhabi helping to drive rig drilling efficiencies.
ADNOC Drilling and H&P signed a three-year Rig Enablement Framework Agreement in late 2021 that strengthened the companies’ existing strategic partnership. ADNOC Drilling had committed to buy eight high-performance land rigs known as FlexRigs. When the rigs arrived, so did a total of 29 H&P people. Twenty of them headed to the site.
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Our case studies
New integrated drilling services contracts underscores robust track record
ADNOC Drilling has built an Oilfield Services division in under five years that would have taken others over a decade. Generating revenues of more than $400 million in 2022, the division is testament to the entrepreneurial nature of ADNOC Drilling. It supports ADNOC Drilling to provide a comprehensive Integrated Drilling Services (IDS) to its customers, both onshore and offshore.
IDS is the practice by which integration of all well services and equipment are covered by one service company, the IDS
Our case studies
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Extended drilling reach
The ADNOC Drilling offshore island segment has led the way in delivering multiple wells from a single surface location. Drilling at the artificial islands advances efficiency by allowing more than 200 wells to be delivered from each island, instead of up to 10 from a conventional jack–up rig.
We have continued to innovate and deliver progressively longer wells for our customers. The technique to deliver these long, horizontal wells is called Extended Reach Drilling (ERD). An advanced form of directional, horizontal drilling, ERD comes with multiple benefits for the customer, including reduced well delivery time, reduced costs, and the associated reduced emissions and environmental impact.
Our case studies
02
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True teamwork advances efficiency and excellence
On eight new land rigs across Abu Dhabi, 20 operational leaders from across the U.S. supervise drilling and maintenance crews. Mentoring and coaching ADNOC Drilling crews, the men have come from U.S.-based Helmerich & Payne (H&P). For more than a year, they have been part of the ADNOC Drilling team, based in Abu Dhabi helping to drive rig drilling efficiencies.
ADNOC Drilling and H&P signed a three-year Rig Enablement Framework Agreement in late 2021 that strengthened the companies’ existing strategic partnership. ADNOC Drilling had committed to buy eight high-performance land rigs known as FlexRigs. When the rigs arrived, so did a total of 29 H&P people. Twenty of them headed to the site.
Our case studies
03
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New integrated drilling services contracts underscores robust track record
ADNOC Drilling has built an Oilfield Services division in under five years that would have taken others over a decade. Generating revenues of more than $400 million in 2022, the division is testament to the entrepreneurial nature of ADNOC Drilling. It supports ADNOC Drilling to provide a comprehensive Integrated Drilling Services (IDS) to its customers, both onshore and offshore.
We have continued to innovate and deliver progressively longer wells for our customers. The technique to deliver these long, horizontal wells is called Extended Reach Drilling (ERD). An advanced form of directional, horizontal drilling, ERD comes with multiple benefits for the customer, including reduced well delivery time, reduced costs, and the associated reduced emissions and environmental impact.
Our ESG
Our sustainability vision
To provide efficient, reliable and responsible drilling solutions that create long-lasting, sustainable value for our people, society and environment across our operations.
Sustainability goals and commitments
Our commitment is to embed sustainability across all our business activities in line with regional and global industry best practices
Environmental
Commitment to the protection of the environment through monitoring, reporting and improvement of our environmental performance, energy and emission reduction, water consumption, waste management and biodiversity management.
Social
Commitment to drive 100% health and safety compliance across our operations and improving workforce diversity through equal opportunity and adoption of best practices.
Governance
Commitment to creating impact and value through the highest standards of governance, ethics and transparency, monitoring the Company’s overall approach to Sustainability and ensuring that we comply with applicable regulations and requirements.
Downloads
Strategic Report
Governance Report