ADNOC inks deals worth nearly $1 billion with 8 top-tier contractors
The Abu Dhabi National Oil Company (ADNOC) has signed framework agreements for Concept and Front-End Engineering Design (FEED) services with eight different contractors with a total value of nearly $1 billion.
ADNOC said on Monday that the agreements are for major projects across its full value chain to support the delivery of its 2030 strategy.
The framework agreements – which were signed with eight top-tier global engineering contractors – have a combined scope worth up to $1 billion (AED 3.67 billion). The scope of the agreements is based on the forecasted requirement for external project engineering services across the ADNOC Group, the company explained.
The framework agreements were signed with AMEC International Ltd (part of the Wood Group), Fluor, McDermott, Mott MacDonald, SNC-Lavalin International Arabia Limited – Abu Dhabi (part of the Kentech Group), Technip Energies, Worley, and a joint venture between Tecnicas Reunidas and NPCC. The agreements 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.
ADNOC also explained that, by structuring the framework agreements with a group of top-tier contractors instead of procuring smaller individual agreements, it was able to secure pre-agreed terms and conditions thereby reducing tendering cycle by months, achieve highly competitive rates by leveraging long-term contracts that service its entire portfolio, and establish a group-wide performance management and review process that provides high visibility of contractor performance.
Abdulmunim Saif Al Kindy, ADNOC People, Technology & Corporate Support Executive Director, said: “These framework agreements follow a very competitive tender process and the smart nature of the deals will deliver substantial cost savings, optimize 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”.
The engineering services framework agreements come less than two months after ADNOC said it was making an investment of $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 5 million barrels per day (mmbpd) by 2030.
The investment is in the form of three contracts awarded by ADNOC Offshore to Schlumberger, ADNOC Drilling, and Halliburton after a competitive tender process.