ADNOC to invest almost $1 billion for project engineering services
Agreements with 8 top-tier contractors cover concept and front-end engineering design for major projects across ADNOC’s value chain.
The Abu Dhabi National Oil Company (ADNOC) has signed agreements for Concept and Front-End Engineering Design (FEED) services for major projects across its full value chain to support the delivery of its 2030 strategy.
The framework agreements – which were signed with eight top-tier global engineering contractors – have a combined scope worth up to $1 billion (AED 3.67 billion) and the potential for 50% of the value to flow back into the United Arab Emirates’ (UAE) economy under ADNOC’s In-Country Value (ICV) program, over the agreement term between 2021 and 2026.
The nature of the agreements underpins ADNOC’s approach to procurement which is enabling it to drive value and commerciality across its portfolio. By structuring the framework agreements with a group of top-tier contractors instead of procuring smaller individual agreements, ADNOC was able to secure pre-agreed terms and conditions thereby reducing tendering cycle by months.
ADNOC signed the framework agreements with AMEC International Ltd (part of the Wood Group), Fluor, McDermott, Mott MacDonald, SNC-Lavalin International Arabia Limited – Abu Dhabi (part of the Kentech Group), Technip Energies, Worley, and a joint venture between Tecnicas Reunidas and NPCC.
