ADNOC Drilling Secures Transformational $1.7 Billion Contract to Unlock UAE’s World Class Unconventional Energy Resources

ADNOC Drilling Company PJSC (“ADNOC Drilling” or “the Company”) (ADX symbol: ADNOCDRILL / ISIN: AEA007301012) has been awarded, by ADNOC, a $1.7 billion contract to provide drilling and associated services for the recovery of unconventional energy resources. The contract will see Turnwell deliver 144 unconventional oil and gas wells.

To service the contract, and explore the considerable future opportunities in unconventional resources, ADNOC Drilling has incorporated a new company, Turnwell Industries LLC OPC
(“Turnwell”). ADNOC Drilling has signed a term sheet to enter into a strategic partnership with Schlumberger Middle East SA (“SLB”) and Patterson-UTI International Holdings, Inc.
(“Patterson-UTI”) subject to signing definitive agreements and any necessary regulatory
approvals. The new company will be primarily engaged in unconventional drilling operations.

Abdulmunim Saif Al Kindy, ADNOC Upstream Executive Director and Vice Chairman of
ADNOC Drilling, said:” Our goal at ADNOC is to provide the energy and energy products that
people depend on every day to power their lives and ensure a just, orderly and equitable
energy transition. This award will accelerate the development of Abu Dhabi’s world-class
resources to meet the world’s growing demand for affordable, accessible energy. ADNOC
Drilling is perfectly placed to responsibly develop these resources. Utilizing partnerships, innovative AI, digitalization and advanced technologies we will unlock Abu Dhabi’s abundant
energy resources, to drive value for the UAE.”

Commenting on the announcement, Abdulrahman Abdulla Al Seiari, Chief Executive
Officer, ADNOC Drilling, said: “Abu Dhabi’s unconventional energy resources are among the
world’s largest. This award, for 144 wells is just the beginning. It represents a transformational
opportunity for ADNOC Drilling as the UAE’s world class unconventional energy resources will
require many thousands more wells and we are in a prime position to deliver them.
‘’It represents a significant expansion of our operations and specialist capabilities and to help
us with that, we have set up a new company called Turnwell, and have signed a term sheet
with SLB and Patterson-UTI, for potential partnership and support with the latest technology,
specialist services and innovations in the unconventional energy drilling space subject to
signing definitive agreements and any necessary regulatory approvals.

”Spearheading unconventional energy drilling development within the Middle East region and
securing the UAE’s unconventional energy needs and resources, ADNOC Drilling will leverage
cutting-edge innovations in AI smart drilling design, completions engineering, and production
solutions. This will be enabled by ADNOC Drilling’s recent joint venture with Alpha Dhabi,
Enersol, which will see its scalable technology ecosystem bolstered through investments in –
and acquisitions of – AI-enabled solutions and innovative technologies.
This award marks our latest endeavour to support the UAE’s position as a trusted and reliable
energy provider and is a key step towards ensuring the nation’s gas growth ambitions. The
award solidifies ADNOC Drilling’s leadership in the regional market while also providing a
strong new revenue stream for the Company.”

This initial phase of unconventionals development is expected to employ up to nine land rigs,
of which five are already included in ADNOC Drilling’s fleet as of 31 December 2023. The
contract is expected to start contributing to ADNOC Drilling’s revenue towards the second half
of this year. The Company’s full-year 2024 and mid-term guidance only captures this initial
award, creating significant potential upside to our business and financials in the mid to long-
term.

Unconventional energy refers to oil and gas resources trapped in subsurface reservoirs
requiring additional technology and processes to unlock them. Abu Dhabi today holds an
estimated 220 billion barrels of unconventional oil and 460 TCF of unconventional gas in place.
The opportunity in unconventional energy presents outstanding scale with the production
potential comparable to some of the most plentiful unconventional energy resources in the
U.S.

SLB (NYSE: SLB) is a global technology company that drives innovation for a balanced planet.
It has extensive experience and expertise in the recovery of unconventional oil and gas
resources in the Middle East and around the world.
Patterson-UTI is one of the leading oilfield services companies in North America and has been
heavily involved in the development of the United States unconventional energy resources.
The company comprises an impressive collective of top-tier talent, equipment, and
technology.