DUBAI: The Abu Dhabi National Oil Company (ADNOC) has signed framework agreements worth AED 3.67 billion ($1 billion) for major projects with eight global engineering contractors, the company said in a statement.
The agreements were signed for concept and front-end engineering design (FEED) services for major projects, and the services contracted under the deal will primarily be carried out in the UAE and has the potential for 50 percent of its value to flow back into the economy under the oil company’s in-country value program over the agreement term between 2021 and 2026, ADNOC said.
By structuring the framework agreements with a group of top-tier contractors instead of procuring smaller individual agreements, ADNOC was able to reduce tendering cycle by months and at highly competitive rates, it said.
The agreements were signed with AMEC International Ltd., Fluor, McDermott, Mott MacDonald, SNC-Lavalin International Arabia Ltd.– Abu Dhabi, 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.