UAE's ADNOC signs deals worth up to $1bn with top contractors
Abu Dhabi National Oil Company inks agreements for concept and front-end engineering design services for major projects.
Abu Dhabi National Oil Company (ADNOC) announced on Monday the signing of framework agreements for concept and front-end engineering design (FEED) services for major projects 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 and the potential for 50 percent of the value to flow back into the UAE economy under ADNOC’s In-Country Value (ICV) program between 2021 and 2026.
By structuring the framework agreements with a group of top-tier contractors instead of procuring smaller individual agreements, ADNOC said it was able to secure pre-agreed terms and conditions thereby reducing tendering cycle by months and achieving highly competitive rates.
Abdulmunim Saif Al Kindy, ADNOC People, Technology & Corporate Support executive director, said: “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.
"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.
"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 signed the framework agreements with AMEC International Ltd, Fluor, McDermott, Mott MacDonald, SNC-Lavalin International Arabia Limited – Abu Dhabi, Technip Energies, Worley and a joint venture between Tecnicas Reunidas and NPCC.
The agreement 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.
Credit to www.arabianbusiness.com