This ad will close in 15 sec
Tags
Drilling & Production
Industry News

ADNOC and BHGE form strategic partnership to improve drilling efficiencies

Abu Dhabi National Oil Company (ADNOC or the Group) and Baker Hughes, a GE company have signed a strategic partnership agreement, that will enable and support the growth and development of ADNOC's subsidiary, ADNOC Drilling, into a fully-integrated drilling and well construction provider. As part of the agreement, BHGE will acquire a five percent stake in ADNOC Drilling. The transaction values ADNOC Drilling at approximately $11 billion. BHGE will be the sole provider of certain proprietary leading edge and differentiated equipment and technologies related to the integrated drilling offering, supporting ADNOC Drilling's growth. Together, ADNOC and BHGE will deliver more competitive well completion times, greater drilling efficiencies and better well economics, and will capitalize on new business opportunities as ADNOC Drilling grows through its new expanded offering.

The partnership represents the first time that ADNOC has brought an international strategic partner to acquire a direct equity stake in one of its existing services businesses. ADNOC Drilling is the largest drilling company in the Middle East and the sole provider of drilling rigs and associated services to ADNOC Group companies. ADNOC Drilling also possesses decades of market experience and detailed knowledge of the UAE's subsurface, enabling reduced risk in drilling activities. With more than 40 years of operations in the country, BHGE has deep domain expertise and a proven track record of solving complex drilling challenges through innovative technical solutions. Ongoing access and support from BHGE's market-leading technology and equipment portfolio will help accelerate ADNOC Drilling's ongoing growth and development of a broader product offering, including drilling and well completion services. This partnership structure aligns the interests of both ADNOC and BHGE in driving greater productivity and efficiency while increasing returns.

The partnership is expected to generate predictable, long-term revenue streams and growth in the market for both companies through a mutually-beneficial, attractive commercial structure, pre-defined work plans and future dividends. ADNOC Drilling and BHGE will set up an advisory board with representation from both companies to oversee the implementation and ongoing operations, and BHGE will join ADNOC Drilling's Board of Directors.

The partnership will enable ADNOC to capture more value from every barrel of oil it produces as it plans to grow its conventional drilling activity by 40 percent by 2025 and substantially ramp up the number of its unconventional wells, in line with its 2030 smart growth strategy. ADNOC Drilling will remain the sole rig provider to ADNOC Group Companies and capitalize on ADNOC's growing upstream activity by deploying its new integrated offering to capture up to 30 percent of the drilling and completion market over the next three years, as it demonstrates increasing drilling efficiencies and improved customer service levels.

The two partners will be able to leverage ADNOC Drilling's existing rig fleet capacity with limited capital expenditure outlay. The partnership will gain significant new business opportunities, including the potential to offer integrated drilling services beyond the UAE's borders.

H.E. Dr Sultan Ahmed Al Jaber, UAE Minister of State and ADNOC Group CEO, said: "We are very pleased to be partnering with BHGE in ADNOC Drilling, in line with our wise leadership's guidance to create and enhance value across our business by forming strategic partnerships. We chose BHGE after a rigorous and competitive process as a partner with whom we have a long-standing working relationship and who shares ADNOC's long term vision and values. This unique partnership with BHGE comes at an important time in the drilling needs of Abu Dhabi as ADNOC grows its conventional and unconventional hydrocarbon resources and as we see future potential for further regional growth. It will ensure we will be able to better service our upstream growth while capturing and retaining greater value.

"The partnership forms an important building block of ADNOC's 2030 smart growth strategy as we continue to drive operational efficiency and performance, and unlock even more value from every barrel we produce. The combined capabilities and expertise from this partnership will create greater drilling efficiencies and faster well completion times, generate attractive returns and enable the transfer of know-how and access to technology. Importantly, it will also drive job creation and economic growth, as well as maintain a healthy level of competition in the dynamic UAE oilfield services market."

This partnership is another important step in ADNOC's group-wide transformation and value creation program that addresses the evolving energy landscape and helps ensure ADNOC remains a resilient and flexible company able to take full advantage of market opportunities - from upstream to downstream. The Group's transformation is supported by a new and expanded approach to strategic partnerships and co-investments as well as the more proactive management of ADNOC's portfolio of businesses and allocation of capital.

"This partnership brings together BHGE and ADNOC, backed by a close and long working relationship. We are very pleased to take a minority stake in ADNOC Drilling to jointly develop and further grow the company's technical capabilities, market access and value. In a unique way, it allows us to drive predictable revenue streams and long-term growth for both companies and lets us invest in a stable, reliable and secure market environment. Supported by BHGE's leading technology and service portfolio, ADNOC Drilling will enable ADNOC to unlock significant value from their untapped resources, while building local capabilities and accelerating overall market growth," said BHGE Chairman and Chief Executive Officer Lorenzo Simonelli. "The transaction significantly increases our activity in the region and demonstrates our unique ability to create value for our customers and shareholders through innovative commercial arrangements, partnerships and leading technology solutions."

The UAE is located in one of the world's largest hydrocarbon super-basins with significant potential to tap its undeveloped reservoirs and further develop its existing resources. Realizing this potential, alongside the ongoing growth and development of ADNOC Drilling, will provide more opportunities for local third-party service providers to compete for and support ADNOC's expanding integrated drilling and ancillary service requirements. The transformation of ADNOC Drilling will improve the integration of UAE private sector service providers, as well as create new career opportunities for ADNOC employees and support domestic economic growth. The partnership reinforces ADNOC's in-country value creation strategy and demonstrates BHGE's longstanding commitment to the country.

Company Info

Latest News

Tags
Industry News

Athabasca Oil Corporation announces $265 million Leismer Infrastructure Transaction

Athabasca has taken a number of steps to enhance liquidity to ensure financial resiliency. Early in Q4 2018, the Company obtained the release of a $41.5 million letter of credit related to the Trans Mountain Expansion Project and secured a $25 million increase to its letter of credit facilities.

Athabasca Oil Corporation is pleased to provide an update on its midstream process, preliminary 2019 capital guidance expectations and its recent reductions in corporate costs.

Read More

Tags
Industry News
Pipelines

Cenovus’s 2019 budget demonstrates cost leadership and capital discipline

The structural improvements Cenovus has achieved at its oil sands operations have resulted in reduced costs for maintaining base production and adding new production and have positioned the company to create additional value with more efficient use of capital.

Cenovus Energy Inc. remains committed to increasing shareholder value through cost leadership, capital discipline and safe and reliable operations. These commitments, in combination with the company's high-quality upstream assets and joint ownership in strong refining assets, are expected to further strengthen Cenovus's ability to generate free funds flow and continue deleveraging its balance sheet in 2019.

Read More

Tags
Instrumentation, Systems & Automation

Spring-loaded LVDTs perform in applications with corrosive environments and vibration

NewTek offers customized options for its spring-loaded LVDTs including extended temperature ranges up to 400°F (200°C), mild radiation resistance to 30 MRad, air extend probes and custom spring rates.

NewTek Sensor Solutions offers an extended series of spring-loaded LVDTs that provide accurate dimensional feedback for a variety of position measurement and quality assurance applications including go/no-go measurements, automotive part quality testing, roller position/product thickness control, TIR measurements and material testing under stress.  

Read More

Spray dispenser ideal for applying Sulzer MIXPAC abrasion-resistant coatings

Paired with the unique DPS Spray Dispenser for maintenance and repair projects, the complete MixCoat Spray system includes cartridges containing the packaged coating material, a mixer that ensures consistent coating mix, and the pneumatic operated spray.

Sulzer Mixpac USA, Inc. offers the MIXPAC MixCoat cartridge-based system for a variety of mining applications, including applying abrasion-resistant coatings on pipes and transportation equipment, bores, walkways, and conveyor equipment.

Read More

Tags
Drilling & Production
Industry News

Canadian rig count down slightly year-over-year for November

Baker Hughes, a GE company announced that the Baker Hughes international rig count for November 2018 was 991, down 26 from the 1,017 counted in October 2018, and up 49 from the 942 counted in November 2017. The international offshore rig count for November 2018 was 206, down 1 from the 207 counted in October 2018, and up 23 from the 183 counted in November 2017.

Read More

Tags
Industry News

Thousands of Rotork electric actuators installed at Chinese oil refinery

More than 2,500 Rotork IQ3 electric actuators have been installed at a Chinese oil refinery and petrochemical complex.

More than 2,500 Rotork IQ3 electric actuators have been installed at a Chinese oil refinery and petrochemical complex. Zhejiang Petroleum & Chemical Company Ltd, which refines oil and manufactures chemical products, ordered the actuators for the refinery in construction on the island of Zhoushan, near Shanghai.

Read More

Tags
Industry News

xLC stator adjustment unit triples service life of NETZSCH pumps

In case of wear, the setting nuts of the xLC® unit are adjusted, com-pressing the elastomer to re-establish the reduced sealing line.

The new xLC unit on the NEMO progressing cavity pump from  NETZSCH triples the service life of the pump, particularly when conveying difficult, abrasive media. When wear occurs in the rotor-stator system, the new xLC unit allows the performance of the pump to be re-established by adjusting the preload between the conveyor elements. 

Read More

Tags
Industry News
Pipelines

Innovative solution delivers additional natural gas to eastern markets on Canadian mainline

TransCanada Corporation has secured 675,000 gigajoules (GJ) (630 million cubic feet) per day of new natural gas transportation contracts from the Western Canadian Sedimentary Basin (WCSB) on TransCanada's Canadian Mainline. Its North Bay Junction Open Season resulted in long-term, fixed-priced contracts for service that will reach markets in Ontario, Quebec, the Maritimes and the Northeastern U.S.

Read More

Tags
Industry News
Pipelines

Algonquin Power & Utilities Corp. announces agreement to acquire Enbridge Gas New Brunswick

Algonquin Power & Utilities Corp. announced that its subsidiary Liberty Utilities (Canada) LP has entered into an agreement to purchase Enbridge Gas New Brunswick Limited Partnership , a subsidiary of Enbridge Inc., along with its general partner for C$331 million, subject to certain customary adjustments. New Brunswick Gas is a regulated utility that provides natural gas to approximately 12,000 customers in 12 communities across New Brunswick, and operates approximately 800 km of natural gas distribution pipeline.

Read More

Tags
Instrumentation, Systems & Automation
Software & IT

5 reasons why organizations are outsourcing pipeline control room services

Houston-based Remote Operations Center (ROC), a leader in oil & gas control room operations, provides outsourced control room services to over 6,000 miles of pipelines, spanning crude, natural gas, saltwater disposal, and refined products.

A pipeline control room is the central nervous system of oil and gas operations - continuously receiving and processing tremendous amounts of sensory data, quickly highlighting important information requiring action and using that information to coordinate and control operations to mitigate risks and optimize performance. With heightened public attention on pipeline assets, growing regulatory oversight over operations, increased market competition amongst operators, and an ever-aging asset base, the ability to effectively and efficiently manage all aspects of pipeline operation has become increasingly difficult. More than ever there is a pressing need to ensure each pipeline is operated safely, reliably and compliant with the latest regulations.

Read More

Tags
Drilling & Production

Operators save rig time and improve safety using Churchill's drift tool

Jose Soliz, Vice President of Sales for Churchill's operations in the US said:

Churchill Drilling Tools celebrated a landmark achievement recently.  Churchill's Drift Catcher, run by operators across the globe to secure positive drift confirmations, celebrated its 2,000th run.

Read More

Tags
Industry News

Alberta calls for production cuts to combat oil price gap

Alberta Premier Rachel Notley has announced a production cut of 8.7 percent to take effect on oil producers in the province January 1, 2019. – Government of Alberta, via Flickr; used under Creative Commons license

Alberta Premier Rachel Notley has announced a temporary slowdown in oil production in the province to try and combat low prices for Albertan oil driven by a lack of shipping capacity to U.S. refiners. That gap is costing the country more than $80 million daily, according to the Alberta government, which blames the troubles largely on the federal government's inability to move pipeline construction forward.

Read More