Abu Dhabi National Oil Company (ADNOC) announced on Tuesday it has identified AED70 billion ($19 billion) worth of products in its procurement pipeline that could be manufactured locally.
Out of this value, ADNOC signed agreements for manufacturing opportunities worth AED21 billion ($5.7 billion) with UAE and international companies.
The agreements, which were signed at the “Make it in the Emirates Forum”, will see the companies set up and expand manufacturing facilities in the UAE as well as jointly explore with ADNOC the potential for new investments in local manufacturing.
The local manufacturing opportunities comprise of over 100 products which will be utilized across ADNOC’s full value chain as it expands its operations to cater for growing global energy demand.
ADNOC aims to purchase these products between 2022 and 2030 and is inviting the private sector to take advantage of this pipeline and invest in the UAE’s manufacturing sector to produce the products locally.
The products identified with local manufacturing potential are spread over drilling; mechanical and heating ventilation and air conditioning (HVAC); technology; piping, fittings and valves; electric submersible; instruments, control and telecom; maintenance, repair and operations; chemicals; electrical; and offshore architecture.
The signed agreements include a strategic collaboration agreement with India’s Intech Organics to explore manufacturing calcium and sodium bromide in the UAE for the first time; framework agreements with Schlumberger and Independent Technical Services (ITS) on local manufacturing and assembly of electric submersible pumps, and its components; a strategic collaboration agreement with MaxTube Saje for local manufacturing of glass-reinforced epoxy (GRE) lining of various metallic tubular products including production tubing; a strategic collaboration agreement with NOV-Tuboscope on evaluating the localization of GRE-lined production tubing; and a strategic collaboration agreement with Soluforce on setting up local manufacturing facility for reinforced thermoplastic pipes and non-metallic solutions, amongst others.
Dr. Sultan bin Ahmed Al Jaber, Minister of Industry and Advanced Technology and ADNOC Managing Director and Group CEO, said, “ADNOC is reinforcing its role as a critical engine for the UAE’s industrial growth as we expand our operations to responsibly cater for the world’s growing energy demand.
“We invite local and international manufacturers to take advantage of these opportunities and join the UAE in our industrial growth journey.”