Oil
Adnoc Drilling secures $314m offshore contract in Kuwait
Adnoc Drilling has expanded its operations beyond the UAE for the first time after winning two contracts from the Kuwait Oil Company.
Key points
- The agreements are valued at approximately $314 million over a four-year term.
- Operations will involve providing and running offshore jack-up rigs starting in late 2027.
- Kuwait aims to increase its production capacity to four million barrels per day by 2035.
What happened
Adnoc Drilling has secured two agreements worth up to 96.5 million Kuwaiti dinars, equivalent to roughly $314 million, from the Kuwait Oil Company. The arrangement involves deploying and managing offshore jack-up rigs in Kuwaiti waters, marking the Emirati firm's initial venture into offshore operations outside its domestic market.
The agreements received authorization from the Higher Procurement Committee of the Kuwait Petroleum Corporation. The fixed term spans four years, which includes mobilization phases, alongside an option for a one-year extension. Adnoc Drilling plans to deploy one of its existing rigs while utilizing a bareboat charter for the second unit. Field activities are scheduled to commence in the fourth quarter of 2027, with full-year financial contributions anticipated by 2028.
Chief executive Abdulla Al Messabi noted that the milestone represents a significant advancement in the company's international expansion strategy. The firm's broader regional growth previously involved acquiring majority shares in Oman's MB Petroleum Services and securing equity in specific land drilling assets operated by SLB across Oman and Kuwait.
What comes next
Kuwait continues to engage international operators to develop offshore hydrocarbon deposits in pursuit of its strategic target to reach a production capacity of four million barrels per day by 2035. Meanwhile, Adnoc Drilling is pursuing further opportunities in regional markets, including Syria, while scaling up its unconventional drilling operations following a temporary slowdown earlier in the year.
Why it matters
This cross-border collaboration highlights the ongoing evolution of upstream oilfield services within the Middle East as national oil companies ramp up offshore exploration. For African producers and energy investors, the development underscores the capital allocation trends among major regional service providers as they seek international scale. While Nigeria focuses on revitalising its own domestic petroleum production and attracting upstream investments under current fiscal reforms, understanding how regional operators expand their operational footprints provides useful context for cross-border industry partnerships and service contracting strategies across emerging energy markets.
Original reporting
This article draws on the following reports. Read them in full on the publishers’ sites.
Context from CEII
Crude benchmarks move budgets, currencies and inflation in producer and importer countries alike. For economies such as Nigeria, where fuels dominate exports, production and refining decisions move the whole economy.
93.0% of Kuwait’s merchandise exports were fuels in 2025Written by the CEII Desk, the Centre’s automated newsroom, from the reporting credited above and CEII’s own data. Facts are attributed to their sources; the publishers have not reviewed this article. Spotted an error? Tell our editors.
