Abu Dhabi National Oil Company (ADNOC) has awarded three contracts worth AED 13.2 billion for the purchase and supply of drill and packaging pipes as part of its smart contracts and procurement methodology, which aims to enhance the value of the company's business.
The range of materials awarded in the three awarded contracts is the largest of its kind in the world and contributes to the enhancement of the value of ADNOC's work in the field of drilling services, and confirms the company's commitment to implement its strategy, which aims to increase profitability and economic return in the field of exploration and development And production.
The total value
The total value of the contracts awarded to the Consortium of Suppliers representing Tenaris SA (Luxembourg), Abu Dhabi Oilfield Services Company (ADOS) representing Valorique SA (France) and Habshan Trading Company Marubeni (Japan), which represents 13.2 billion dirhams ($ 3.6 billion), is expected to contribute to local value added exceeding 50%.
Foreign investments
This includes attracting more than 367 million dirhams ($ 100 million) of foreign direct investment over the next five years to establish a maintenance center, state-of-the-art OCTG plant and oil wells in the UAE, and a training academy in Abu Dhabi to enhance the skills and expertise of staff. Citizenship, which contributes to achieving additional value for the state.
According to the contracts, the three companies will, over a five-year period, provide ADNOC with a total of one million metric tons of drilling and packaging pipes, roughly the same distance from Abu Dhabi to Houston, to support ADNOC's drilling operations and operations. And complete oil and gas wells.
Spending series
The award of these contracts is the first part of a series of spending on the purchase of oil drilling materials and services worth a total of 55 billion dirhams ($ 15 billion) planned by ADNOC in the next five years. The next approved by the Supreme Petroleum Council in November 2018, which includes capital investments of 486 billion dirhams.
Except for awarded contracts, other procurement and supply contracts include downhole completion equipment, wellhead equipment, casing pipe holders, drilling fluids and geared drilling equipment, cementing and cementing equipment for wellbore isolation, and wireless equipment for recording and collecting data on geological structures to characterize the well and reservoir. .
The biggest contracts
Abdulmunim Saif Al Kindi, chief executive officer of ADNOC's Exploration, Development and Production Department, said the contracts are among the largest in the world to buy and supply oil well drilling and packaging pipelines following a rigorous and competitive bidding process.
He stressed that the award of these contracts confirms ADNOC's continued efforts to enhance profitability and commercial return from its ever-expanding business portfolio and is a testament to the commitment of ADNOC to build strategic partnerships that deliver added value that contribute to enhancing economic returns, improving performance, and increasing Proceeds from the company's assets and capital.
He added: “These agreements enhance ADNOC's resilience, its ability to respond proactively to demand, and the rapidly changing global energy landscape, as it seeks to expand and develop its business in providing integrated services in the field of oil and gas well drilling and supports the company's efforts to implement its strategy. Integrated 2030 for Smart Growth. These contracts will further enhance local value added and provide more rewarding investment opportunities for private sector foreign direct investment and demonstrate ADNOC's commitment to creating sustainable value for the UAE and its people, in line with leadership guidance. ”
Diversification of the local economy
The award follows a rigorous and competitive bidding process, which included an accurate assessment of the value of the contract that will support the growth and diversification of the local economy, through the ADNOC Local Value Added Enhancement Program, which aims to support and document local and international partnerships and provide opportunities for further growth. Economic, social, knowledge sharing, and job creation for citizens in the private sector.
These contracts stimulate local production and services, and are expected to pour more than 6.6 billion dirhams ($ 1.8 billion) of the value of these contracts into the local economy, providing more job opportunities for qualified UAE nationals.