| 20 April 2024, Saturday |

Adnoc agrees to $1bn engineering services contracts with eight contractors

Adnoc has signed $1 billion worth of project engineering deals with eight contractors as it aims at raising output capacity to 5 million barrels per day by 2030.

About 50 percent of the value is expected to flow back to the UAE economy as part of the company’s in-country value program, Adnoc said on Monday.

“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,” said Abdulmunim Al Kindy, Adnoc’s people, technology and corporate support executive director.

Adnoc signed agreements with Wood Group company Amec International Ltd, Fluor, McDermott and Mott MacDonald.

It also signed agreements with Kentech Group company SNC-Lavalin International Arabia Limited-Abu Dhabi, Technip Energies, Worley and a joint venture between Tecnicas Reunidas and the NPCC.

The agreements cover five years, with an option for a two-year extension. The contractors will also run training programmes to develop local expertise.

The contracts cover concept and front-end engineering design for major projects across the group. The scope of the projects has been estimated on the basis of requirements for external engineering services across the group, Adnoc said.

The company secured pre-agreed terms and agreements that reduced the usual tender timetable “by months”, it said.

Last week, Adnoc announced $187 million investment to expand the production capacity of Al Nouf oilfield from 160,000 bpd to 175,000 bpd by 2024.

Adnoc awarded the engineering, procurement and construction contract for the Nouf development to Abu Dhabi-based contracting company Robt Stone.

The oil company has so far awarded more than contracts worth more than $1.5 billion over the past couple of months to increase production capacity across onshore and offshore oilfields in Abu Dhabi.

In July, the company awarded $763.7m worth of contracts to expand production from its offshore Upper Zakum and Satah Al Razboot, or Sarb, fields.

It awarded the contracts for integrated rigless services across six of its artificial islands to Schlumberger, Adnoc Drilling and Halliburton.

  • The National News