Agreements with 8 top-tier contractors cover Concept and Front-End Engineering Design for major projects across ADNOC’s value chain
The Abu Dhabi National Oil Company (ADNOC) recently announced the signing of framework agreements for Concept and Front-End Engineering Design (FEED) services for major projects across its full value chain to support the delivery of its 2030 strategy.
The framework agreements, signed with eight top-tier global engineering contractors, have a combined scope worth up to US$ 1bn (AED 3.67bn) and the potential for 50% of the value to flow back into the United Arab Emirates’ (UAE) economy under ADNOC’s In-Country Value (ICV) programme, over the agreement term between 2021 and 2026.
“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,” commented Abdulmunim Saif Al Kindy, ADNOC People, Technology & Corporate Support Executive Director.
ADNOC signed the framework agreements with AMEC International (part of the Wood Group), Fluor, McDermott, Mott MacDonald, SNC-Lavalin International Arabia-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.
As an integral part of its 2030 strategy, ADNOC is optimizing its procurement strategy to reflect market dynamics, focusing on long-term contracts with a reduced number of suppliers that provide stable and reliable delivery at highly competitive rates.
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