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May 22, 2024
Egypt Bulletin
Business

ADNOC awards $658 million in contracts to five local and international companies

Abu Dhabi National Oil Company (ADNOC) announced it has awarded framework agreements valued at $658 million (AED2.4 billion) for cementing services as part of its effort to expand its drilling capacity and enable drilling growth. Following a competitive tender process, framework agreements were awarded to Haliburton Worldwide Limited Abu Dhabi (Halliburton), Baker Middle East (Baker), Emirates Western Oil Well Drilling & Maintenance Co. (Emirates Western), NESR Energy Services (NESR) and Emjel Oil Field Services (Emjel).

ADNOC awards 8 million in contracts to five local and international companiesADNOC’s onshore and offshore fields will be covered by these contracts, which will run for a period of five years and be renewable. As part of ADNOC’s In-Country Value programme, over 65 percent of the award value could flow back into the UAE economy. Additionally, successful companies will work to identify local manufacturing opportunities and create skilled employment opportunities for UAE citizens.

Mr. Yaser Saeed Almazrouei, Executive Director of ADNOC Upstream, commented: “The awards for cementing services will support the continued expansion of ADNOC’s drilling activities resulting in a stronger position as a global supplier of some of the world’s most carbon efficient barrels.”

“In line with the UAE Leadership’s wise directives and as part of our strategy, we are prioritizing in-country value, and these awards will enable careers for UAE Nationals and new opportunities for the private sector, directly supporting the objectives of the UAE’s Principles of the 50.”

The smart nature of the awards will enable ADNOC to realize hundreds of millions of dollars in cost savings. As an integral part of its 2030 strategy, ADNOC optimizes its procurement strategy to reflect market dynamics, focusing on long-term contracts with an optimized number of suppliers that provide stable and reliable delivery at highly competitive rates.

The award for cementing services takes the total value of ADNOC’s drilling-related framework agreements and procurement awards since November 2021 to over $8.5 billion (AED31.2 billion). These awards will support ADNOC’s requirement to drill thousands of oil wells as it increases its crude oil production capacity to five million barrels per day (mmbpd) by 2030 and drives gas self-sufficiency for the UAE.

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