Adnoc investing $1 billion to raise output capacity
DUBAI: Adnoc, the UAE’s largest fuel and convenience retailer, has signed project engineering agreements with eight contractors worth $1 billion.
Adnoc, which will be included in FTSE Emerging Market Index from September 16, plans to raise output capacity to 5 million barrels/day by 2030.
Around 50 per cent of the value is expected to flow back to the UAE economy as part of the company’s in-country value programme, Adnoc said on Monday.
“These framework agreements follow a very competitive tender process and the smart nature of the deals will deliver substantial cost savings, optimise project delivery schedules and provide Adnoc with an increased flexibility to drive its growth targets and proactively respond to the demands of the fast-evolving energy landscape,” said Abdulmunim Al Kindy, Adnoc’s people, technology and corporate support executive director.
Adnoc signed the agreements with Wood Group company Amec International, Fluor, McDermott and Mott MacDonald.
It also signed agreements with Kentech Group company SNC-Lavalin International Arabia Limited-Abu Dhabi, Technip Energies, Worley and a joint venture between Tecnicas Reunidas and the NPCC.
The agreements cover five years, with an option for a two-year extension. They will create additional skilled employment for the UAE nationals. The contractors will also run training programmes to develop local expertise.
The contracts cover concept and front-end engineering design for major projects across the group. The scope of the projects has been estimated on the basis of requirements for external engineering services across the group, the Adnoc said.
The company secured pre-agreed terms and agreements that reduced the usual tender timetable ‘by months’, it said.
Last week, Adnoc said it was investing $187 million to expand the production capacity of Al Nouf oilfield from 160,000bpd to 175,000bpd by 2024.
Adnoc has awarded the engineering, procurement and construction contract for the Nouf development to Abu Dhabi-based contracting company, Robt Stone.
The oil company has so far awarded contracts worth more than $1.5 billion over the last couple of months to increase the production capacity across onshore and offshore oilfields in Abu Dhabi.
In July, the company awarded $763.7 million worth of contracts to expand production from its offshore Upper Zakum and Satah Al Razboot, or Sarb, fields.
It awarded the contracts for integrated rig-less services across six of its artificial islands to Schlumberger, Adnoc Drilling and Halliburton.
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