Abu Dhabi National Oil Company has identified Dh70 billion ($19bn) worth of products in its procurement pipeline with local manufacturing potential and has signed agreements for Dh21bn ($5.7bn) worth of these manufacturing opportunities.
Products with local manufacturing potential will be purchased by Adnoc, the state-controlled oil and gas major, between 2022 and 2030 as it the company expands its operations, it said in a statement on Tuesday.
Adnoc signed agreements with UAE and international companies at the Make it in the Emirates Forum taking place in Abu Dhabi.
The deals will allow companies to set up and expand manufacturing facilities in the UAE, as well as jointly explore with Adnoc the potential for new investments in local manufacturing.
The local manufacturing opportunities comprise more than 100 products that will be utilised across Adnoc’s full value chain as it expands its operations.
“Adnoc is reinforcing its role as a critical engine for the UAE’s industrial growth as we expand our operations to responsibly cater for the world’s growing energy demand,” said Dr Sultan Al Jaber, Minister of Industry and Advanced Technology and Adnoc managing director and group chief executive.
“We invite local and international manufacturers to take advantage of these opportunities and join the UAE in our industrial growth journey as we strengthen the resilience of our supply chains, enhance economic self-sufficiency and deliver lasting value.”
Adnoc is creating multiple long-term domestic manufacturing opportunities for the private sector and it is encouraging the companies to seize the opportunity, Dr Al Jaber added.
Adnoc plans to spend $127bn in capital expenditure to bolster its upstream production capacity and downstream portfolio, as well as its low-carbon fuels business and clean energy ambitions.
The company also aims to increase its national reserves of 4 billion stock-tank barrels of oil and 16 trillion standard cubic feet of natural gas as t continues to invest in new exploration projects.
Last month Adnoc announced new oil discoveries at Bu Hasa, the emirate’s biggest onshore field, as well as at the onshore Block 3 and Al Dhafra Petroleum Concession that will add 650 million barrels of oil to the emirate's hydrocarbons reserves.
In December, Adnoc announced a “significant” increase in national reserves of 4 billion stock-tank barrels (STB) of oil and 16 trillion standard cubic feet of natural gas. The additional reserves increased the UAE’s hydrocarbon reserves base to 111 billion barrels of oil and 289 trillion scf of natural gas, Adnoc said in a statement at the time.
The company has awarded several contracts recently to increase its production.
Earlier this month, Adnoc awarded a contract worth $173 million to boost production capacity of Abu Dhabi's flagship Murban crude at one of its largest oilfields, Asab. In March, Adnoc Onshore awarded a contract worth $227m to Robt Stone Middle East for enhanced oil recovery, a technology that will help it to recover more reserves from its largest onshore oilfield, Bab.
The company also signed a five-year contract worth $3.8bn with Adnoc Drilling in December for the continued provision of drilling, workovers and other well services that will drive work crew efficiency, as well as improve rig move times and maintenance scheduling.
Adnoc is among the 11 national champion companies that have opened up more than 300 products in the UAE's 11 priority sectors for local manufacturers. So far, more than $11bn has been redirected into the national economy through the National In-Country Value scheme that aims to boost the private sector's participation in the economy, diversify output and localise critical parts of the supply chain.
The products identified with local manufacturing potential by Adnoc are spread over drilling; mechanical and heating ventilation and air conditioning (HVAC); technology; piping, fittings and valves; electric submersible; instruments, control and telecom; maintenance, repair and operations; chemicals; electrical; and offshore architecture. Companies interested in finding out more details can visit www.adnoc.ae/suppliers or contact firstname.lastname@example.org.
Agreements signed by Adnoc include a strategic collaboration agreement with India’s Intech Organics to explore manufacturing calcium and sodium bromide in the UAE for the first time.
The company also concluded framework agreements with Schlumberger and Independent Technical Services (ITS) on local manufacturing and assembly of electric submersible pumps and its components.
Adnoc also signed a strategic collaboration agreement with MaxTube Saje for local manufacturing of glass reinforced epoxy (GRE) lining of various metallic tubular products including production tubing.
The company also reached a strategic collaboration agreement with NOV-Tuboscope on evaluating the localisation of GRE-lined production tubing; and a strategic collaboration agreement with Soluforce on setting up local manufacturing facility for reinforced thermoplastic pipes and non-metallic solutions, among others.
Adnoc is also driving the UAE’s industrial growth through the expansion of its downstream business.
The Ta’ziz Industrial Chemicals Zone, Adnoc’s joint venture with ADQ, will produce new industrial chemicals in the UAE for the first time, replacing chemicals currently imported, while also exporting to meet growing demand for these chemicals globally.
Adnoc has already welcomed major local and international partners and investors into the Ta’ziz Industrial Chemicals Zone. Building.
The company has registered expressions of interest with more than 20 investors in the Ta’ziz Light Industrial and Services Zones at the Make it in the Emirates Forum.
The Ta’ziz Light Industrial and Services Zones will house an ecosystem that will convert the chemicals produced in the Ta’ziz Industrial Chemicals Zone into consumable products and host companies providing industrial services to Ta’ziz and the Ruwais Industrial Complex.