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ADNOC awards contracts worth 2.4 billion dirhams to 5 local and international companies

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The Abu Dhabi National Oil Company (ADNOC) has awarded contracts worth 2.4 billion dirhams ($658 million) to provide oil and gas well casing and isolation services with cement.

This is part of ADNOC’s ongoing investments to drive growth in the field of drilling operations and increase its crude oil production capacity, as more than 65% of the total contract value will be redirected to the local economy through of the value in the country (ICV) of ADNOC. ) program throughout its execution period.

The winning companies will contribute to generating job opportunities for citizens and will also work to find opportunities to locally manufacture their needs.

The contracts were awarded under competitive framework agreements to “Halliburton Worldwide Limited – Abu Dhabi” (Halliburton), “Baker Middle East” (Baker), and “Emirates Western Oil Drilling and Maintenance LLC” (Western Emirates), “Nasr Energy Services LLC ” and “Imgal Oilfield Services LLC.” (Imgl).

The scope of the contracts includes the provision of lining and insulation services for cement wells in ADNOC’s onshore and offshore fields for a period of 5 years, with the option to extend for two years under the same terms and conditions. This process is considered an important step in the drilling and completion of oil and gas wells, where the cement mixture is pumped between the rock formation and the well casing to protect and isolate the well.

On this occasion, Yasser Saeed Al Mazrouei, CEO of ADNOC’s Exploration, Development and Production Department, said: “Oil and gas well cementing and casing service contracts support ADNOC’s plans and continued efforts to grow and expand. its drilling activities to achieve its goal of increasing its oil and gas production capacity and establishing its position as a reliable global provider of less carbon intensity.

He added: “In line with the directives of our wise leadership, ADNOC continues to prioritize value enhancement in the country in pursuit of its strategy, and we are confident that the award of these contracts will help achieve significant additional local value and create more job opportunities for highly skilled citizens in the private sector, which will directly support the objectives of the “Fifty Principles”.

The smart approach to awarding these contracts allows ADNOC to reduce costs by hundreds of millions of dollars. As part of its integrated 2030 strategy for smart growth, ADNOC is working to improve its purchasing strategy in line with the dynamics of changing markets, as it focuses on concluding long-term contracts with a sufficient number of suppliers to ensure the Stability and continuity of supply of the required services at competitive prices.

Based on contracts awarded today, the total value of framework agreements and procurement contracts related to drilling operations that ADNOC has awarded since November 2021 rises to more than AED31.2bn ($8.5bn).

These contracts support ADNOC’s plans to drill thousands of new wells to achieve the goal of increasing its crude oil production capacity to 5 million barrels per day by 2030 and enable the UAE to achieve gas self-sufficiency.

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