Bloomberg/Christopher Pike

Halal Business

ADNOC awards AED 13.2 billion in contracts to support upstream growth plans

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Under the terms of the contracts, the three companies will supply a combined total of one million metric tonnes of casing and tubing—which by comparison is equivalent to the distance from Abu Dhabi to Houston—over five years to support the state-owned giant’s drilling activities.

Thursday 22, August 2019 BY KUDAKWASHE MUZORIWA

Abu Dhabi National Oil Company (ADNOC) has awarded contracts for the procurement of casing and tubing valued at AED 13.2 billion ($3.6 billion) as the oil giant drives value through its smart approach to procurement.

The contracts—which were awarded to Consolidated Suppliers Establishment, Abu Dhabi Oilfield Services Company and Habshan Trading Company have the potential to achieve an in-country value of over 50 per cent. This includes more than AED 367 million ($100 million) in foreign direct investment to establish a state-of-the-art oil country tubular goods (OCTG) threading plant and repair centre as well as a training academy in Abu Dhabi to enhance local expertise and generate value for the UAE. 

ADNOC plans to spend AED 55 billion ($15 billion) in the next five years in a series of drilling-related procurement and the initiative is part of the firm’s AED 486 billion five-year capital expenditure (CAPEX) approved by Abu Dhabi’s Supreme Petroleum Council (SPC) in November 2018.

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.”

The combined scope of the awards is based on the forecasted requirement for casing and tubing across the ADNOC Group.

Other procurement categories are downhole completion equipment, wellheads and X-Mas trees as well as liner hangers, drilling fluids, directional drilling, cementing and wireline logging. 

TAGS : ADNOC , upstream growth , Consolidated Suppliers Establishment, Abu Dhabi Oilfield Services Company, Habshan Trading Company, CAPEX, Abu Dhabi’s Supreme Petroleum Council

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