Abu Dhabi National Oil Company (ADNOC) has signed framework agreements, worth up to $1bn (AED3.67bn) with eight global engineering contractors for major projects.
The contractors include AMEC International, Fluor, McDermott, Mott MacDonald, SNC-Lavalin International Arabia– Abu Dhabi, Technip Energies, Worley, and a joint venture between Tecnicas Reunidas and National Petroleum Construction Company (NPCC).
Go deeper with GlobalData
The contractors will be responsible for providing concept and front-end engineering design (FEED) services for the undisclosed projects across Adnoc’s full value chain.
Moreover, the contractors will launch and run enhanced training programmes to enable knowledge transfer and further develop local expertise.
The deals have a tenure of five years, with an option for extension for a further two years.
Work under the deals would be primarily carried out in the country, the state-owned oil giant said.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataIn a press statement, Adnoc said: “Potential for 50% of the total value of the agreements to flow back into the UAE’s economy under Adnoc’s In-Country Value program over the agreement term.”
The energy conglomerate expects the nature of the agreements to deliver substantial cost savings, optimise project schedule, and underpin the firm’s smart approach to procurement.
Adnoc people, technology and corporate support executive director Abdulmunim Saif Al Kindy said the smart nature of these deals will provide increased flexibility to Adnoc to drive its growth targets and meet the demands of the energy landscape.
Kindy added: “In addition, the agreements offer the potential to create additional skilled employment opportunities for Emiratis and include commitments that contracted services will primarily be carried out in the UAE, ensuring more economic value remains in the country from our contract awards.”
Adnoc, as part of the 2030 strategy, is optimising its procurement strategy.
It is also focusing on long-term contracts with reduced suppliers. This allows the firm to provide stable and reliable delivery at competitive rates, the state-owned company said.
