ADNOC Drilling Wins $313.6 Million Kuwait Offshore Contracts, Its First Outside the UAE

The two separate contracts, for Rig 1 and Rig 2, have a combined maximum value of $313.6 million (Dh1.15 billion), according to the Abu Dhabi-listed company. They take ADNOC Drilling into Kuwait's offshore drilling market. Until now its offshore operations have been confined to the UAE, where it works mainly for companies in the ADNOC group.

Each contract runs for an initial four years, a period that includes mobilising the rigs to the work site, with an option to extend by one more year. ADNOC Drilling said the stated maximum value does not include the optional extension year. It expects operations to begin in the fourth quarter of 2027, so the contracts will not add revenue until late next year.

The company presented the award as part of its strategy of taking on work across the whole life of a well rather than drilling alone. Expanding in the region, finding new customers and diversifying revenue are among the main pillars of that plan. ADNOC Drilling also said the contracts fit its policy of bidding selectively for work that earns high returns, with an emphasis on capital efficiency and financial discipline.

Chief executive Abdulla Ateya Al Messabi said entering Kuwait's offshore market opens a new phase for the company's regional presence. He said Kuwait Oil Company's choice reflected confidence in ADNOC Drilling's integrated operating capabilities, and that the company would keep pursuing opportunities that deliver high returns for shareholders.

The contract is modest next to ADNOC Drilling's domestic backlog, but it is the first test of whether the company can win offshore business from another Gulf national oil company. The next step is for the two sides to finalise the contracts and prepare the rigs before operations start in the fourth quarter of 2027.