ADNOC awards framework agreements worth US$658mn

Oil rig AdobeStock 239075964Abu Dhabi National Oil Company (ADNOC) has announced the award of framework agreements valued at US$658mn (AED 2.4bn) for cementing services 

The framework agreements were awarded to Halliburton Worldwide Limited Abu Dhabi, Baker Middle East, Emirates Western Oil Well Drilling & Maintenance Co., NESR Energy Services and Emjel Oil Field Services, following a competitive tender process. 

These awards cover ADNOC’s onshore and offshore fields and will run for five years with an option for a further two years. More than 65% of the award value could flow back into the United Arab Emirates (UAE) economy under ADNOC’s In-Country Value programme over the duration of the agreements. Furthermore, skilled employment opportunities will be created for UAE nationals by the successful companies who will also work to identify local manufacturing opportunities.

Yaser Saeed Almazrouei, ADNOC upstream executive director, said, “The awards for cementing services will support the ongoing expansion of ADNOC’s drilling activities as we grow our production capacity, strengthening our position as a reliable global supplier of some of the world’s most carbon efficient barrels.” 

The smart nature of the awards will enable ADNOC to realise hundreds of millions of dollars in cost savings. As an integral part of its 2030 strategy, ADNOC is optimising its procurement strategy to reflect market dynamics, focusing on long-term contracts with an optimised 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 more than US$8.5bn (AED31.2bn). These awards will support ADNOC’s requirement to drill thousands of new wells as it increases its crude oil production capacity to five million bpd by 2030 and drives gas self-sufficiency for the UAE. 

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