ADNOC Drilling Wins $313.6 Million Jack-Up Contracts in Kuwait

Two jack-up rig contracts worth a combined maximum $313.6 million (KWD 96,554,561) will take ADNOC Drilling into offshore Kuwait — its first offshore operations outside the UAE. Kuwait Petroleum Corporation's Higher Procurement Committee approved the awards for Rig 1 and Rig 2 under Tender No. RFP-2151011, with Kuwait Oil Company as the end client.

The contracts cover provision and operation of two high-specification offshore jack-up rigs — self-elevating platforms that stand on the seabed and drill in shallow water. ADNOC Drilling Company PJSC disclosed the approval in a statement. No drilling targets, water depths or field names were released. That gap matters; KOC has not said where the rigs will work.

What are the terms?

The structure is straightforward. Four years firm, mobilization included, plus a one-year option. The $313.6 million ceiling excludes the optional year, so the total could run higher if KOC exercises it. Operations are expected to start in the fourth quarter of 2027.

That startup date is more than two years out. Contract awards to first spud (the start of drilling) often slip in the Gulf when rig upgrades, yard work or permit chains intervene. The announcement did not address a mobilization schedule.

How does this fit ADNOC Drilling's strategy?

The company framed the awards as a milestone. The entry into offshore Kuwait marks its first offshore rig operations beyond UAE waters, and it builds on what ADNOC Drilling calls the regional expansion pillar of its Drill-to-Operate model — an approach that uses strategic partnerships and new customers, markets and revenue streams as long-term growth drivers.

Read that as a export pitch. The driller is marketing its shallow-water jack-up fleet, developed for Abu Dhabi fields, to neighboring state operators.

What happens to the financials?

First full-year contribution lands in 2028. ADNOC Drilling said the expected 2027 contribution is already reflected in its preliminary 2027 guidance, previously communicated. That phrasing is careful — guidance was set before this announcement, so investors should not expect a revision upward on this news alone.

The company disclosed no dayrate breakdown between the two rigs, no split of the $313.6 million, and no performance penalties or termination provisions. A combined ceiling for two separate contracts tells you little about per-rig economics until the schedules firm up.

What are the conditions?

The awards are not yet unconditional. ADNOC Drilling stated they remain subject to applicable conditions and completion of the relevant contractual formalities. In practice, that can mean government consents, bonding and final signature. Kuwaiti tenders at this value sometimes face challenge procedures from losing bidders; none has surfaced publicly.

The takeaway: a $313.6 million, four-plus-one-year commitment puts ADNOC Drilling in Kuwaiti waters for the first time — but startup sits in Q4 2027, and the paperwork isn't done yet. Watch for contract signature, rig identities and KOC's target fields as the watch items through 2026.