State-owned Abu Dhabi National Oil Company (ADNOC) has achieved cost savings of $2 billion (AED7.36 billion) over the past five years by leveraging advanced technologies and digitalization to enhance drilling efficiencies and optimize operations, the oil giant said in a statement.  

Besides advanced technologies, ADNOC unlocked the cost savings and efficiency gains by harnessing fully integrated drilling services (IDS) and innovative techniques to improve drilling performance and well economics through several initiatives, the statement said.  

While the cost savings reflect ADNOC’s ongoing strategic investments in digitization and state-of-the-art technologies to further enhance performance, maximize value and enable smart growth as part of its digital transformation, a key enabler of the $2 billion cost savings is ADNOC’s Real Time Data Monitoring Center (RTMC) which monitors up to 120 well sites simultaneously in real-time and is powered by big data from live and historical operations.

The RTMC collects information to track drilling performance and well delivery progress, enabling ADNOC to optimize drilling operations by reducing non-productive time and enhancing productivity.

By the end of 2019, the RTMC had facilitated a reduction in well duration by 30%, providing cost savings of about $1 billion (AED3.68 billion).

Yaser Saeed Almazrouei, ADNOC Upstream Executive Director, said: “The achievement validates ADNOC’s focus on embedding state-of-the-art technologies across our value chain and is a testament to our commitment to optimize our operations and enhance efficiency throughout our business as we further strengthen our position as one of the lowest-cost producers of crude oil in the world.” 

Techniques and initiatives implemented by ADNOC to increase drilling efficiency and enable the cumulative savings of $2 billion include adopting light or linerless casing design, using smart drilling fluids and maximizing offline jobs through batch drilling, improved data acquisition and stimulation jobs performed offline.

(Writing by Seban Scaria; editing by Daniel Luiz)

seban.scaria@refinitiv.com

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