Adnoc draws close to $19bn target

Abu Dhabi National Oil Company (Adnoc) has successfully entered into agreements with over 60 local and international companies to foster local manufacturing opportunities in various industrial sectors.

Adnoc, in an official announcement on Wednesday, confirmed that these agreements bring the company closer to its goal of locally producing industrial products worth 70 billion dirhams ($19 billion) as outlined in its procurement pipeline unveiled last year.

The agreements have resulted in an inflow of 2.84 billion dirhams into the United Arab Emirates economy, with suppliers investing in the expansion or establishment of new facilities, according to Adnoc.

Last year, the state-owned company had signed agreements worth more than $6.8 billion for local manufacturing commitments with both domestic and international companies.

Adnoc highlighted that out of the agreements inked so far, 20 billion dirhams ($5.45 billion) has been dedicated to local fabrication yards. These yards are expected to generate numerous job opportunities, contribute to the growth of the gross domestic product, and enhance the resilience of the local supply chain across multiple industrial sectors in the UAE, the company added.

Adnoc has advanced its target for the $19 billion procurement pipeline awards to 2027, ahead of the previously set goal of 2030.

Prominent players and yards that have secured contracts include Halliburton, SLB, National Petroleum Construction Company, Adyard Abu Dhabi, Eversendai Offshore, Yokogawa, Proclad, and Lamprell Energy.

Saleh Al Hashmi, director of Adnoc’s commercial and in-country value directorate, emphasized the company’s role in driving industrial growth in the UAE. He stated that Adnoc is strengthening its position by localizing the supply chain and creating long-term domestic manufacturing opportunities for the private sector. Al Hashmi further highlighted that these agreements support Adnoc’s ongoing efforts in decarbonization, ultimately driving sustainable value for the company and enhancing the resilience of the supply chain and the UAE’s industrial foundation.

As Adnoc prepares to expand its oil production capacity target to 5 million barrels per day by 2027, supported by improved market fundamentals, the company has outlined plans to invest $150 billion in capital expenditure over the next four to five years.