Adnoc awards Dh13.2bn in contracts to local suppliers
The casing and drilling contracts form part of the company's efforts to generate more in-country value
Abu Dhabi National Oil Company (Adnoc) awarded Dh13.2 billion worth of contracts in casing and tubing for drilling activities to three suppliers as it looks to drive more in-country value.
Local companies Consolidated Suppliers Establishment representing Luxembourg-based Tenaris, Abu Dhabi Oilfield Services Company on behalf of France's Vallourec as well as Habshan Trading Company for Japan's Marubeni were awarded the contracts. The firms have the potential to generate 50 per cent in-country value, said Adnoc.
More than $100 million (Dh367.2m) foreign investment is also expected to be directed over the next five years, including to establish a repair centre and a training academy in Abu Dhabi.
"The award of contracts with a combined scope that is one of the world’s largest for tubing and casing follows a highly competitive bid process," said Adnoc upstream director Abdulmunim Saif Al Kindy.
"It underscores Adnoc's optimisation efforts to drive commerciality across our growing portfolio. In addition, it is testament to our targeted approach to engage with value-add partners to unlock value as well as enhance the performance and returns on our assets and capital," he added.
Adnoc started its in-country value programme last year with an expenditure of Dh18bn as part of efforts to ensure that local suppliers and companies are engaged across its value chain to boost the local economy.
Updated: August 21, 2019 02:35 PM