Abu Dhabi's National Drilling Company is going to pay Lamprell US$333.3 million to build two jack up drilling rigs
National Drilling buys more offshore rigs
National Drilling will spend an additional US$333.3 million (Dh1.2bn) to expand its fleet of jackup oil rigs.
The deal for two new rigs is an extension of an existing construction contract between the Abu Dhabi company and Lamprell,a rig specialist based in the UAE.
"This is another significant contract award, demonstrating the strength of the market for jackup rigs," said Nigel McCue, the chief executive of Lamprell.
Jackup oil rigs are mobile platforms positioned to drill into the sea floor for oil and gas.
They are typically used for drilling in shallow waters. National Drilling, established in 1972, is a subsidiary of the Abu Dhabi National Oil Company, which oversees the emirate's oil and gas industry.
The rigs commissioned by National Drilling are triangular hulls with three 310ft legs and are capable of drilling in water up to 200ft deep.
The rigs, which will be built in Lamprell's Hamriyah facility, are scheduled to be delivered in the first half of 2014.
Last year National Drilling committed to doubling its 28 onshore and offshore drilling platforms over the next few years.
In August, the company announced that it had received seven new onshore rigs as part of an expansion programme.
The UAE is targeting an oil production boost of 800,000 barrels per day (bpd) to 3.5 million bpd by 2018.
National Drilling commissioned Lamprell to build two jackup rigs last October at a cost of $158m each.
*For the latest developments at Abu Dhabi National Oil Company, visit www.thenational.ae/adnoc