Project FinanceData
ADNOC Drilling awarded USD 313.6m Kuwait offshore rig contracts
Two four-year jack-up contracts mark the Abu Dhabi contractor's first offshore operations outside the UAE, with start-up scheduled for Q4 2027.
ADNOC Drilling Company PJSC disclosed on 13 January 2025 that Kuwait Petroleum Corporation Higher Procurement Committee approved the award of two separate offshore jack-up rig contracts under Tender No. RFP-2151011 for Kuwait Oil Company. One source reports the combined maximum value as USD 313.6 million, equivalent to KWD 96.55 million, while another cites USD 315 million for the same KWD figure. The awards mark ADNOC Drilling's entry into the Kuwait offshore market and represent the contractor's first offshore rig operations outside the UAE, having previously operated only in UAE waters.
Contract structure and timeline#
Each contract runs for four years on a firm basis, with mobilization included in that term, and both carry a one-year extension option. The maximum value figure of USD 313.6 million does not include the optional extension year. Start of operations is scheduled for the fourth quarter of 2027. ADNOC Drilling stated that full-year financial contribution from these contracts will begin in 2028, and that the partial 2027 contribution has already been incorporated into the preliminary 2027 guidance the company communicated previously. The awards remain subject to applicable conditions and completion of the relevant contractual formalities.
Procurement outcome#
Kuwait Oil Company awarded the two contracts to ADNOC Drilling after the contractor submitted the lowest compliant bids, meeting the technical specifications and other requirements set out in the tender. The contracts relate to the provision and operation of two high-specification offshore jack-up rigs, designated as Rig 1 and Rig 2 under the tender documentation. Individual contract values, specific rig identities and exact durations have not been disclosed in the announcement. The approval follows Kuwait's moves to expand offshore exploration and development following a series of discoveries in its territorial waters.
Regional expansion and context#
The awards build on ADNOC Drilling's experience in offshore operations and support the regional expansion pillar of its Drill-to-Operate strategy, which identifies strategic partnerships and access to new customers, markets and revenue streams as drivers of long-term growth. The contractor is listed on the Abu Dhabi Securities Exchange. Kuwait Oil Company has recently made discoveries at Nokhatha, Julaia and Jazza, and has been preparing further offshore drilling and seismic programmes to build on those discoveries.
Sources2 sources across 2 domains
- marinelink.comMarine LinkCombined maximum contract value of USD 313.6 million equivalent to KWD 96.55 million, four-year firm term inclusive of mobilization with one-year option, Q4 2027 start date, tender number RFP-2151011, Kuwait Petroleum Corporation Higher Procurement Committee approval, first offshore rig operations o
- splash247.comSplash247Combined maximum value of USD 315 million for KWD 96.55 million, ADNOC Drilling submitted lowest compliant bids, Kuwait Oil Company discoveries at Nokhatha, Julaia and Jazza, preparation of further offshore drilling and seismic programmes, Kuwait moves to expand offshore exploration and development
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