Malaysian player signs deal with Adnoc for key UAE projects

Eversendai has signed a key agreement with state-owned Abu Dhabi National Oil Company (Adnoc) for the fabrication of onshore and offshore structures in the United Arab Emirates.

The Malaysian player said in a note to the Malaysian Stock Exchange, Bursa, on Thursday that “through this strategic collaboration agreement [SCA], Adnoc has mandated the steel fabrication works to be performed within UAE fabrication facilities”.

Subsidiary Eversendai Offshore operates a fabrication yard at Ras Al Khaimah in the UAE, which is one of the largest of its kind in the region and described by Eversendai as a “well-established waterfront fabrication facility”.

It caters to the oil, gas and energy-transition sectors, with an increased focus on the offshore wind farm market.

Adnoc is spending massively on the expansion of its oil production capacity, which is expected to rise to 5 million barrels a day by 2027, up from the existing 4 million bpd level.

Multiple agreements

It has signed agreements with more than 60 domestic and international companies for local manufacturing opportunities across multiple industrial products.

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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.

Adnoc said that of the agreements signed to date, 20 billion dirhams are dedicated to local fabrication yards.

“These fabrication yards will create thousands of new jobs, drive gross domestic product growth and enhance the resilience of the local supply chain across multiple industrial sectors in the UAE,” it said.

Eversendai describes the collaboration with Adnoc “as a tremendous opportunity and great potential to secure more Adnoc projects in coming years”.

“It’s the intention of Adnoc to facilitate the business opportunities between Adnoc and UAE Steel fabricators for the next five years, whereby huge potential opportunities are expected within Adnoc’s project development programme,” it noted.

Adnoc has accelerated its $19 billion procurement pipeline awards target to 2027, ahead of the previous target of 2030.