ADNOC signs $1bn in framework agreements
The Abu Dhabi National Oil Company (ADNOC) announced August 23 it had signed framework agreements valued at $1bn and covering its entire value chain.
Five-year agreements signed with eight mostly upstream services companies, such as McDermott International and Technip Energies, carry a two-year extension option. All of the contractors have committed to knowledge transfer through local training as part of the framework agreements for concept and front-end engineering design services.
|
Advertisement: The National Gas Company of Trinidad and Tobago Limited (NGC) NGC’s HSSE strategy is reflective and supportive of the organisational vision to become a leader in the global energy business. |
Half of the value of the combined $1bn in agreements is expected to go back into the economy of the United Arab Emirates.
“The nature of the agreements underpins ADNOC’s smart approach to procurement which is enabling it to drive value and commerciality across its portfolio,” the company said.
ADNOC offered few specifics about the contracts other than to say that hiring well-established contractors rather than smaller firms helped it secure pre-arranged terms at competitive rates.
ANDOC in June secured $5bn in loans from the Export-Import Bank of Korea. South Korea is also a major buyer of Emirati oil, and ADNOC recently began discussing joint hydrogen and ammonia projects with Korean firms.