Abu Dhabi National Oil Company (Adnoc) has signed deals worth AED 35 billion ($9.52 billion) with 25 leading domestic and international players for multiple oil and gas industry products to be manufactured within the emirate of Abu Dhabi.
The state-owned giant on Thursday confirmed the development and said “the agreements set out the suppliers’ intention to manufacture 21 products in the United Arab Emirates, supporting the delivery of Adnoc’s 2030 strategy”.
“Leading companies who have signed agreements with Adnoc include Siemens, Halliburton, Celeros Flow Technology, Emerson, Proton and Schneider Electric,” the company noted.
Leading national oil companies in the region are increasingly aiming to scale up local content requirements in crucial oil and gas projects, including key localisation programmes such as Saudi Aramco’s In-Kingdom Total Value Addand QatarEnergy’s Tawteen in-country value (ICV) digital portal.
Adnoc has an ICV requirement in oil and gas industry contracts, and other key tenders, as part of the push to promote localisation.
The Abu Dhabi player said the new agreements would “stimulate investment in local manufacturing of critical products in support of the diversification of the UAE’s industrial and manufacturing infrastructure”.
Among the key oil and gas industry products that would be manufactured in the UAE are pressure vessels, compressors, pipeline inspections gauges, specialist valves, industrial pumps, switchgear and other key equipment, Adnoc said.
“The agreements could also see investments made in machining, reverse engineering and non-destructive testing equipment,” it added.
Abdulmunim Saif Al Kindy, executive director of people, technology and corporate services at Adnoc, said the agreements would see significant investment flow back into the local economy through the company’s ICV programme.
Adnoc is spending billions of dollars to expand its oil and gas production capacity in the coming years.
Abu Dhabi is likely to achieve oil production capacity of 5 million barrels per day as early as 2025, Upstream understands.