ADNOC scopes out local suppliers
Abu Dhabi National Oil Company (ADNOC) has inked supply chain agreements worth 21bn dirhams ($5.7bn) with UAE-based product makers, including both domestic suppliers and international firms with factories in UAE, the company said on June 21.
ADNOC aims to purchase the locally-sourced products in 2022 and 2030. The contracts cover more than 100 products that could be leveraged internally, everything from ventilators and electrical equipment to piping, fittings and valves.
ADNOC said the deals include a strategic partnership with India's Intech Organics to explore making calcium and sodium bromide in the UAE, in a first for the Emirates. Schlumberger and Independent Technical Services both secured framework agreements covering local manufacturing and assembly of electric submersible pumps and their components, while ADNOC will work with MaxTube Saje to initiate local manufacturing of glass reinforced tubing materials.
NOV-Tuboscope has also been awarded a UAE-focused glass reinforced materials contract, while Soluforce secured a strategic collaboration deal to open a local factory dedicated to producing thermoplastic pipes and nonmetallic solutions.
Following the contract awards, a further 49bn dirhams in value from ADNOC's future procurement pipeline is expected to go to UAE-based suppliers.
The news was announced at the Make it in the Emirates Forum, a domestic industry promotion event at which national firms were expected to commit 110bn dirhams to purchase deals with local producers, according to Reuters. ADNOC inked expressions of interest with more than 20 investors, on the sidelines of the forum's light industrial and services strand.
Sultan Ahmed Al Jaber, ADNOC's managing director and CEO, who also serves as UAE minister of industry and advanced technology, said: "ADNOC is reinforcing its role as a critical engine for the UAE’s industrial growth as we expand our operations to responsibly cater for the world’s growing energy demand.
"In line with the UAE Leadership’s wise directives and our national industrial strategy, ADNOC is creating multiple long-term domestic manufacturing opportunities for the private sector, through our robust procurement pipeline.
"We invite local and international manufacturers to take advantage of these opportunities and join the UAE in our industrial growth journey as we strengthen the resilience of our supply chains, enhance economic self-sufficiency and deliver lasting value.”