Agreements with 8 top-tier contractors cover Concept and Front-End Engineering Design for major projects across ADNOC’s value chain
Contracted services to be primarily carried out in the UAE
Potential for 50% of the total value of the agreements to flow back into the UAE’s economy under ADNOC’s In-Country Value program over the agreement term
Nature of the agreements delivers substantial cost savings and optimizes project schedule, underpinning ADNOC’s smart approach to procurement
The Abu Dhabi National Oil Company (ADNOC) announced today, 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 (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. 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.
Source: https://cyprusshippingnews.com/2021/08/24/adnoc-signs-framework-agreements-worth-nearly-1-billion-for-project-engineering-services/
