Adnoc Drilling (ADX:ADNOCDRILL) and two US-listed companies have concluded a joint venture agreement aimed at propelling the United Arab Emirates' journey into unconventional energy. This partnership, branded as Turnwell Industries, is structured on ownership proportions of 55% for Adnoc Drilling, 30% for oilfield services titan SLB, and 15% for the US drilling and completions services entity Patterson-UTI TW.
Both US partners are well-recognized entities in the drilling sector. The UAE, under the guidance of state-owned Adnoc, has established an ambitious goal for achieving gas self-sufficiency by 2030. In line with this vision, the country initiated an exploration program in 2016 dedicated to unconventional gas, which is understood as natural gas located in challenging-to-reach rock formations.
Current estimates suggest that the Gulf nation possesses around 160 trillion standard cubic feet of recoverable unconventional gas resources. With this joint venture targeting an initial deployment of 144 wells, there are also forward-looking intentions to explore additional domestic opportunities within the unconventional energy landscape.
The Turnwell project leverages advanced drilling technologies, and since its inception, it has remarkably recorded a well delivery pace of just 19.9 days. Adnoc Drilling's Chief Executive, Abdulrahman Abdulla Al Seiari, commented on the significance of this joint venture, stating, "This joint venture is a groundbreaking achievement and is already paying dividends through the significant reduction in well delivery time as seen through the first wells being delivered in record time." The definitive agreements outlining the joint venture were formally introduced on September 30, designating Turnwell as the unconventional drilling wing for Adnoc Drilling, responsible for executing a substantial $1.7 billion contract awarded by its parent entity, the Abu Dhabi National Oil Company, known as Adnoc..