Abu Dhabi, UAEWednesday 21 October 2020

Adnoc signs in-country value partnerships with Mubadala and Enec

The companies will explore opportunities to localise critical parts of their value chain

Adnoc's head office in Abu Dhabi. AIQ, a joint venture in which Adnoc owns 60 per cent, has already begun developing new products. Reuters
Adnoc's head office in Abu Dhabi. AIQ, a joint venture in which Adnoc owns 60 per cent, has already begun developing new products. Reuters

Abu Dhabi National Oil Company signed agreements with Mubadala Investment Company and Emirates Nuclear Energy Corporation to drive more in-country value into the UAE’s economy.

The companies “explore potential opportunities for collaboration in creating additional skilled employment opportunities for Emiratis in the private sector and sourcing goods and services within the UAE,” they said in a statement on Sunday.

The state oil company, along with Mubadala and Enec, will explore opportunities to localise critical parts of their value chain, especially as they respond to the pandemic.

"The agreements will enable Adnoc and both companies [to] collaborate to further drive the localisation of goods and services across our value chains and we look forward to swiftly progressing the agreements as they offer significant potential to maximise value for the UAE,” Rashed Al Shamsi, director, commercial directorate at Adnoc, said.

National oil companies in the region such as Saudi Aramco have made in-country value generation a key driver to stimulate private sector growth and boost local job creation. Saudi Aramco through its 'In-Kingdom Total Value Add initiative' or IKTVA looks to increase local production and aims to meet at least 70 per cent of its procurement spending from Saudi Arabia's companies by 2021.

Adnoc started its in-country value programme in 2018, spending about Dh18 billion to ensure that local suppliers and companies are engaged across its value chain to boost the domestic economy.

Adnoc said its programme has driven more than Dh44bn back into the UAE economy, creating more than 1,500 private sector jobs for Emiratis.

Enec, which connected its reactor to the grid earlier this year, has engaged 2,000 local companies that have been awarded contracts worth Dh17.5bn so far.

Adnoc has certified more than 4,000 suppliers across various sectors such as oil and gas, construction, food and hospitality as part of its in-country value programme.

"The in-country value programme has been shown to significantly contribute to the economic development of the UAE, while simultaneously creating jobs for Emiratis within the private sector,” said Haifa Al Maskari, Mubadala’s director of business services.

Last year, Adnoc extended its in-country value programme through partnerships with the likes of oil services firm Schlumberger and real estate developer Aldar.

Updated: September 20, 2020 04:43 PM

Editor's Picks
THE DAILY NEWSLETTER
Sign up to our daily email