Abu Dhabi announces nearly $1 billion drilling contract
Oil and gas remain a major part of the Emirati economy, despite recent investments in renewable energy and green technology. The contract comes as the UAE gets ready to provide gas to Germany amid the war in Ukraine.
The Abu Dhabi National Oil Company (ADNOC) has awarded a major drilling contract to its subsidiary.
ADNOC Drilling will receive $980 million to obtain two offshore rigs and the accompanying equipment and manpower. ADNOC said the new rigs will work to find oil and gas off the coast of the United Arab Emirates, saying the contract will help to “maximize value from Abu Dhabi’s offshore oil and gas resources,” according to a statement.
Why it matters: The UAE is rich in oil and gas, especially Abu Dhabi. This has made the Gulf state relevant in global energy politics. Last month, ADNOC made an agreement with a German company to supply them with liquified natural gas. Germany, like other European states, is seeking to reduce its dependence on Russian gas in response to the invasion of Ukraine and ahead of the European winter.
Emirati entities have been investing heavily in green technology and renewable energy this year, but oil and gas remain responsible for about a third of the UAE economy.
