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Market Chatter: Adnoc Drilling Prepared to Boost UAE Oil Capacity Beyond 5 Million b/d Target

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Adnoc Drilling Chief Financial Officer Youssef Salem on Tuesday said the UAE-based oilfield services and drilling company is prepared to boost the country's oil production capacity to more than its targeted output of 5 million barrels per day by 2027 if needed, according to a Reuters report.

Adnoc Drilling is ready to deliver any production capacity that parent company and state-owned energy major Abu Dhabi National Oil Company needs, Salem told Reuters in an interview.

The UAE recently quit as a member of the Organization of the Petroleum Exporting Countries, shrugging off its output restrictions.

Last year, Energy Minister Suhail al-Mazrouei said that the country could increase production capacity to 6 million b/d if required, the report said.

According to Salem, the company has exceeded the country's capacity targets, reaching 142 deployed rigs by 2025 compared with an earlier target of 127 rigs by 2030.

The company has multiple rig suppliers from China, technology partnerships, and operational teams in place to meet any level of demand from ADNOC, Salem said, adding that well deliveries rose in Q1 versus the year-ago period.

Adnoc Drilling has not faced any impact from the disruption caused by the Iran conflict, with the company ensuring the availability of 98% of its rigs in Q1, Salem said.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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