TechnipFMC opens manufacturing plant in Abu Dhabi to supply drilling equipment to Adnoc

The facility has already created more than 200 jobs, including high-skilled roles for UAE nationals

Adnoc headquarters in Abu Dhabi. In May, Adnoc signed agreements with more than 60 UAE and international companies to manufacture critical non-oil products in its supply chain in the Emirates. Victor Besa / The National

Oil and gas services company TechnipFMC has opened a manufacturing plant in Abu Dhabi to supply onshore and offshore drilling equipment to Adnoc as the state-backed energy major seeks to boost its local supply chain.

The 47,000 square-metre project, located in ICAD 3, is the “most advanced” of its kind in the Mena region and is enabled by Adnoc's In-Country Value programme, TechnipFMC said in a statement on Wednesday.

“This is an industry-leading facility … which will continue to ramp-up capacity in the coming years to support the development of the UAEs’ energy vision while maximising the value created in-country,” said Thierry Conti, president of surface technologies at TechnipFMC.

“This will lead to the creation of hundreds of jobs and unique opportunities to develop local Emirati talent. We are also working with the local supply chain to further enhance their capability and expand our local ecosystem."

The facility has already created more than 200 new jobs, including high-skilled roles for Emiratis, TechnipFMC said, adding that it was “committed” to boosting its local workforce.

The facility will make onshore and offshore wellhead systems, tree systems, and other key drilling and completion and pressure control technologies for the energy market.

The systems and technologies produced at the manufacturing unit can be used in the extraction and production of hydrocarbons as well as the storage of carbon and hydrogen, TechnipFMC said.

The initiative supports “Adnoc’s strategy to localise our supply chain, enhance the UAE’s industrial base, and create private sector jobs for UAE Nationals”, Yaser Almazrouei, Adnoc's executive director of people, commercial and corporate support directorate, said.

“Adnoc continues to encourage local and international companies to take advantage of the long-term domestic manufacturing opportunities in our procurement pipeline and drive sustainable value for our mutual benefit,” he said.

In May, Adnoc signed agreements with more than 60 UAE and international companies to manufacture critical non-oil products in its supply chain in the Emirates as part of its localisation drive.

Adnoc now expects to meet its target to domestically manufacture Dh70 billion ($19 billion) worth of products in its procurement pipeline by 2027, from a previous goal of 2030.

In 2021, the UAE launched its industrial strategy Operation 300bn to position itself as a global industrial centre by 2031.

The 10-year comprehensive road map focuses on increasing the industrial sector's contribution to gross domestic product to Dh300 billion in 2031, from Dh133 billion in 2021.

The strategy focuses on boosting production in 11 priority sectors, supporting the growth of national industries, attracting foreign investment, modernising legislation and ensuring the availability of dedicated financing for local industrial companies.

In February, Adnoc signed agreements worth Dh17 billion with 23 local and international companies to boost the UAE’s manufacturing sector.

That followed from November, when Adnoc signed agreements worth up to Dh35 billion with 25 companies, including Siemens, Halliburton and Schneider Electric.

Updated: September 27, 2023, 3:09 PM