ADNOC signs agreements worth up to $1 billion for FEED

The Abu Dhabi National Oil Company (ADNOC) said it signed framework agreements, worth up to US $1 billion (AED 3.67 billion), 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 has the potential for 50 percent 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 company said in a statement.

“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,” said Abdulmunim Saif Al Kindy, ADNOC People, Technology & Corporate Support Executive Director.

“These framework agreements follow a very competitive tender process and the smart nature of the deals will deliver substantial cost savings, optimize 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,” he added.

ADNOC said they 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.