The Abu Dhabi National Oil Company (ADNOC) has signed the framework agreements for Concept and Front-End Engineering Design (FEED) services worth .
The framework agreements – which is 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.
Abdulmunim Saif Al Kindy, The Executive Director, People, Technology & Corporate Support Directorate of ADNOC said:
“We are very pleased to engage with the eight top-tier engineering contractors awarded to provide best-in-class engineering expertise on our strategic projects across our full value chain. 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 increased flexibility to drive its growth targets and proactively respond to the demands of the fast-evolving energy landscape.
“In addition, the agreements offer the potential to create additional skilled employment opportunities for Emiratis and include commitments that contracted services will primarily be carried out in the UAE, ensuring more economic value remains in the country from our contract awards.”
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.
The agreements will run for five years, with an option for a two-year extension. The eight contractors have committed to set up and run enhanced training programs to further develop local expertise and enable knowledge transfer.
