[ad_1]
Abu Dhabi National Oil Company (ADNOC) today announced the signing of a conceptual and front-end engineering design (FEED) service framework agreement for major projects in its entire value chain to support the implementation of its 2030 strategy.
The total value of the framework agreements signed with eight top global engineering contractors is as high as US$1 billion (Dh3.67 billion), and under the supervision of ADNOC, 50% of the value may return to the UAE economy. The domestic value (ICV) plan, the agreement period is from 2021 to 2026. The scope of the agreement is based on the forecasted demand for external project engineering services by the entire ADNOC Group.
The nature of the agreement supports ADNOC’s smart procurement approach, which enables it to drive value and commercialization in its portfolio. By building a framework agreement with a group of top contractors instead of procuring smaller individual agreements, ADNOC was able to obtain pre-agreed terms and conditions, thereby shortening the bidding cycle by several months, and by using long-term contracts to achieve very competitive prices. The entire investment portfolio and establish a group-wide performance management and review process to provide high visibility of contractor performance.
Commenting on the signing of the agreement, Abdulmunim Saif Al Kindy, ADNOC Executive Director of Personnel, Technology and Corporate Support, said: “We are delighted to work with eight top engineering contractors to provide first-class engineering expertise on strategic projects throughout our value chain. These framework agreements follow a highly competitive bidding process. The smart nature of the transaction will save a lot of costs, optimize project delivery schedules, and provide ADNOC with greater flexibility to promote its growth goals and actively respond to rapid development. Energy demand. In addition, these agreements are likely to create more technical employment opportunities for UAEs, and promise that contract services will be mainly carried out in the UAE, ensuring that our contract awards retain more economic value in the country.”
ADNOC signed a framework agreement with AMEC International Ltd (part of Wood Group), Fluor, McDermott, Mott MacDonald, SNC-Lavalin International Arabia Limited – Abu Dhabi (part of Kentech Group), Technip Energies, Worley, and a joint venture. Tecnicas Reunidas and Between NPCC. The agreement is valid for five years and can be extended for two years. Eight contractors have pledged to establish and operate an intensive training program to further develop local expertise and promote knowledge transfer.
As an integral part of its 2030 strategy, ADNOC is optimizing its procurement strategy to reflect market dynamics, focusing on signing long-term contracts with a reduced number of suppliers to provide stable and reliable delivery at very competitive prices.
[ad_2]
Source link