Adnoc signs framework deals worth $1b for major projects

Adnoc signs framework deals worth $1b for major projects

The Abu Dhabi National Oil Company (Adnoc) announced the signing of framework agreements for Concept and Front-End Engineering Design (FEED) services for major projects across its full value chain to support the delivery of its

2030 strategy.

The framework agreements – which were signed with eight top-tier global engineering contractors — have a combined scope worth up to $1 billion (AED3.67 billion) and the potential for 50% of the value to flow back into the UAE’s economy under Adnoc’s In-Country Value (ICV) programme, over the agreement term between 2021 and 2026. The scope of the agreements is based on the forecasted requirement for external project engineering services across the Adnoc Group.

The nature of the agreements underpins Adnoc’s smart approach to procurement which is enabling it to drive value and commerciality across its portfolio. By structuring the framework agreements with a group of top-tier contractors instead of procuring smaller individual agreements, Adnoc was able to secure pre-agreed terms and conditions thereby reducing tendering cycle by months, achieve highly competitive rates by leveraging long-term contracts that service its entire portfolio, and establish a group-wide performance management and review process that provides high visibility of contractor performance.

Commenting on the signing of the agreements, Abdulmunim Saif