Adnoc awards contracts worth $3.6 bn for wells and drilling materials
Contracts awarded to CSE, ADOSC, and Habshan representing Tenaris, Vallourec and Marubeni respectively
The Abu Dhabi National Oil Company (Adnoc) has announced that it has awarded three contracts worth $3.6 billion for the procurement of casing and tubing, as it drives value through its smart approach to procurement.
The contracts were awarded to Consolidated Suppliers Establishment (CSE), representing Tenaris S.A. (from Luxembourg); Abu Dhabi Oilfield Services Company , representing Vallourec S.A. (from France); and Habshan Trading Company, representing Marubeni Corporation (from Japan), with the potential to achieve In-Country value of over 50%.
This includes more than $100 million in foreign direct investment, over the next five years, to establish an oil country tubular goods (OCTG) threading plant and repair centre, and a training academy in Abu Dhabi to enhance local expertise and generate value for the UAE, Adnoc stated.
Under the terms of the contracts, the three companies will supply a combined total of 1 million metric tons of casing over 5 years, to support Adnoc’s drilling activities.
Abdulmunim Saif Al Kindy, Adnoc Upstream Executive Director, said: “These agreements will provide Adnoc with increased flexibility to proactively respond to the demands of the evolving energy landscape as we ramp up our drilling activities and deliver our 2030 strategy.”
“They will also generate substantial In-Country Value and provide attractive foreign direct investment opportunities for the private sector, further demonstrating ADNOC’s commitment to creating sustainable value for the nation and its people, in line with the Leadership’s wise directives.”
Adnoc’s statement also said that these contracts would support the growth and diversification of the UAE’s economy and is aimed at nurturing new local talent and international partnerships and business opportunities, catalysing socio-economic growth and creating job opportunities for UAE nationals.
With more than $1.8 billion value potential to flow back into the UAE’s economy, the awards will give significant stimulus to the country’s products and services and create additional skilled employment opportunities for UAE nationals, it further stated.
