Abu Dhabi National Oil Company (Adnoc) has signed agreements with more than 60 domestic and international companies for local manufacturing opportunities across multiple industrial products.
Confirming the awards on Wednesday, Adnoc said the agreements bring the company closer to its target to locally manufacture 70 billion dirhams ($19 billion) worth of products in its procurement pipeline announced last year.
The agreements have enabled 2.84 billion dirhams to flow back into the United Arab Emirates economy through industrial investments by suppliers in expanding or establishing new facilities, it added.
The state-owned company signed agreements last year for local manufacturing commitments worth more than $6.8 billion with domestic and international companies.
Adnoc said that of the agreements signed to date, 20 billion dirhams ($5.45 billion) is dedicated to local fabrication yards.
“These fabrication yards will create thousands of new job opportunities, drive gross domestic product` growth and enhance the resilience of the local supply chain across multiple industrial sectors in the UAE,” it said.
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Adnoc has accelerated its $19 billion procurement pipeline awards target to 2027, ahead of the previous target of 2030.
Some of the key players and yards awarded contracts are Halliburton, SLB, National Petroleum Construction Company, Adyard Abu Dhabi, Eversendai Offshore, Yokogawa, Proclad and Lamprell Energy.
Domestic manufacturing
Saleh Al Hashmi, director of Adnoc’s commercial and in-country value directorate, described the company as “a critical engine for the UAE’s industrial growth” and said it is strengthening its role by localising the supply chain and creating long-term domestic manufacturing opportunities for the private sector.
“The agreements we have signed with the private sector support our ongoing decarbonisation efforts and will drive more sustainable value for Adnoc as well as enhance the resilience of our supply chain and the UAE’s industrial base,” he said.
Adnoc plans $150 billion of capital expenditure in the next four to five years as it prepares to advance its 5 million barrels per day of oil production capacity target to 2027 on the back of improved market fundamentals.