The award marks the first in a series of drilling-related procurement expenditures with an overall value of $15 billion that Adnoc plans to make
Abu Dhabi National Oil Company (Adnoc) has announced the award of multi-billion-dollar contracts for the procurement of casing and tubing as it drives value through its smart approach to procurement.
The combined scope of the three contracts awarded is one of the world’s largest in this category, maximising value for Adnoc across its drilling value chain and underpinning its strategy to deliver a more profitable upstream business, the company said.
The contracts – which were awarded to Consolidated Suppliers Establishment, representing Tenaris SA (from Luxembourg); Abu Dhabi Oilfield Services Company, representing Vallourec SA (from France); and Habshan Trading Company, representing Marubeni Corporation (from Japan) – have a combined scope of Dh13.2 billion ($3.6 billion) and the potential to achieve In-Country Value of over 50 per cent.
This includes more than Dh367 million ($100 million) in foreign direct investment, over the next five years, to establish a state-of-the-art oil country tubular goods (OCTG) threading plant and repair centre, and a training academy in Abu Dhabi to enhance local expertise and generate value for the UAE.
Under the terms of the contracts, the three companies will supply a combined total of 1 million metric tons of casing and tubing – which by comparison is equivalent to the distance from Abu Dhabi to Houston – over 5 years, to support Adnoc’s drilling activities.
The award marks the first in a series of drilling-related procurement expenditures with an overall value of Dh55 billion ($15 billion) that Adnoc plans to make in the next five years and is part of its Dh486 billion five-year capital expenditure (Capex) approved by Abu Dhabi’s Supreme Petroleum Council (SPC) in November 2018.
The other procurement categories – excluding this award – are Downhole Completion Equipment, Wellheads, and X-Mas Trees, Liner Hangers, Drilling Fluids, Directional Drilling, Cementing, and Wireline Logging.