Thursday, Dec 8, 2022
International Finance
Oil & Gas

Adnoc in one of world’s largest ‘smart procurement’ contracts

The award complements Adnoc’s upstream growth plans

The Abu Dhabi National Oil Company (Adnoc) announced its decision to award contracts worth Dh.13.2 billion for the procurement of casing and tubing.

The Adnoc contracts were awarded to Consolidated Suppliers Establishment, representing Tenaris; Abu Dhabi Oil field Services Company, representing Vallourec and Habshan Trading Company, representing Marubeni Corporation. The three contracts awarded are considered to be one of the largest in the world in the oil drilling category.

According to the contract, the three companies will supply a total of one million metric tonnes of casing and tubing to Adnoc over five years. The supply is to support Adnoc with its oil drilling activities.

Abdulmunim Saif Al Kindy, Adnoc Upstream Executive Director, said, “These agreements will provide Adnoc with increased flexibility to proactively respond to the demands of the evolving energy landscape as we ramp up our drilling activities and deliver our 2030 strategy.”

Adnoc had planned a series of drilling related procurement activities for the next five years with a total expenditure of Dh.55 billion. The casing and tubing contract for Adnoc is the first one in the series. Abu Dhabi’s Supreme Petroleum Council has approved a capital expenditure of Dhs.486 billion for five years to Adnoc.

The other procurement activities that are to be executed later on include downhole completion equipment, wellheads, liner hangers, drilling fluids, directional drilling, cementing and wireline logging.

The award is expected to support UAE’s growth and diversification through Adnoc’s In-Country Value Programme. Adnoc’s In-Country Value Programme intends to bring in international partnerships and business opportunities, and thereby increase job opportunities for UAE nationals.

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