ADNOC Signs Framework Deals Worth Up To US$1 billion
The Abu Dhabi National Oil Company (ADNOC) has announced that it has signed framework agreements worth up to US$1 billion (AED3.67 billion) for Concept and Front-End Engineering Design (FEED) services for major projects across its full value chain to support the delivery of its 2030 strategy.
The framework agreements were signed with AMEC International Ltd, which is part of the Wood Group, Fluor, McDermott, Mott MacDonald, SNC-Lavalin International Arabia Limited – Abu Dhabi, which is part of the Kentech Group, Technip Energies, Worley and a joint venture between Tecnicas Reunidas and NPCC.
ADNOC described these eight companies as “top-tier” global engineering contractors and said the scope of the agreements was based on the forecasted requirement for external project engineering services across the ADNOC Group.
highlighted that the deals will run for five years, with an option for a two year extension. The eight contractors have committed to set up and run enhanced training programs to further develop local expertise and enable knowledge transfer, according to ADNOC.
“We are very pleased to engage with the eight top-tier engineering contractors awarded to provide best-in-class engineering expertise on our strategic projects across our full value chain,” Abdulmunim Saif Al Kindy, ADNOC’s people, technology and corporate support executive director, said in a company statement.
“These framework agreements follow a very competitive tender process and the smart nature of the deals will deliver substantial cost savings, optimise project delivery schedules and provide ADNOC with increased flexibility to drive its growth targets and proactively respond to the demands of the fast-evolving energy landscape,” Mr Kindy added in the statement.
“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,” the ADNOC representative went on to say.
ADNOC notes on its site that its 2030 strategy is essential to ensuring future success and transforming its business. The strategy is said to be focused on three imperatives – create a more profitable upstream, create a more valuable downstream and create a more sustainable and economic gas supply.
Last month, ADNOC announced an investment of US$763.7 million (AED2.8 billion) in integrated rigless services across six of its artificial islands in the Upper Zakum and Satah Al Razboot (SARB) fields to support its production capacity expansion to five million barrels per day by 2030.
In May, the company announced the award of a US$744 million (AED2.73 billion) contract for the full field development of the Belbazem Offshore Block and an investment of up to US$318 million (AED1.16 billion) to connect newly drilled smart wells to the main production facilities at Bu Hasa.