Adnoc signs new agreements with more than 60 companies - GulfToday

Adnoc signs new agreements with more than 60 companies


Adnoc has more than tripled its direct spend with local manufacturers.

Adnoc announced on Wednesday at the Make it in the Emirates Forum in Abu Dhabi, new agreements with more than 60 UAE-based and international companies to locally manufacture critical non-oil products in its supply chain.

The new agreements bring Adnoc closer to its target to locally manufacture Dhs70 billion ($19 billion) worth of products in its procurement pipeline which was announced at the last Make it in the Emirates forum in June 2022.

In addition, the agreements have enabled Dhs2.84 billion ($774 million) to flow back into the UAE economy through industrial investments by suppliers in expanding or establishing new facilities.

Adnoc also accelerated its Dhs70 billion target to 2027, ahead of the previous target of 2030. Since the launch of Make it in the Emirates, Adnoc has more than tripled its direct spend with local manufacturers.

Adnoc’s Make it in the Emirates agreements are estimated to contribute to 10 per cent of the Dhs172 billion ($46.9 billion) target in the Abu Dhabi Industrial Strategy which will double the size of Abu Dhabi’s manufacturing sector. The agreements could also enable 21,500 jobs within the UAE by 2031.

Dr. Saleh Al Hashmi, Adnoc Director, Commercial and ICV Directorate, said, “Adnoc is a critical engine for the UAE’s industrial growth and we are strengthening this role by localising our supply chain and creating long-term domestic manufacturing opportunities for the private sector from our procurement pipeline, and ensuring its business continuity as we decarbonise our operations and work towards a lower carbon future. The agreements we have signed with the private sector supports our ongoing decarbonization efforts and will drive more sustainable value for Adnoc as well as enhance the resilience of our supply chain and the UAE’s industrial base. We encourage local and international manufacturers to take advantage of the remaining domestic manufacturing opportunities Adnoc has created and join the UAE in our industrial growth journey.”

Domestic manufacturing of critical industrial products strengthens the resilience of Adnoc’s supply chain and provides greater flexibility to respond to market dynamics as the company decarbonizes its operations and invests in lower-carbon energy solutions. It also also supports the UAE Net Zero by 2050 Strategic Initiative as new investors are encouraged to adopt clean technologies while setting up in the UAE through incentives in Adnoc’s In-Coutnry Value programme.

Of the agreements signed to date, Dhs20 billion ($5.45 billion) is dedicated to local fabrication yards. These fabrication yards will create thousands of new job opportunities, drive gross domestic product (GDP) growth, and enhance the resilience of the local supply chain across multiple industrial sectors in the UAE.

The Make it in the Emirates Forum is hosted by the Ministry of Industry and Advanced Technology (MoIAT) in conjunction with the Abu Dhabi Department of Economic Development (ADDED) and Adnoc. The forum is bringing together some of largest industrial companies to explore local manufacturing and investment opportunities in the UAE.

Meanwhile Adnoc and Abu Dhabi National Energy Company (Taqa) announced the award of a strategic investment project estimated at up to $2.4 billion (Dhs8.8 billion) to provide sustainable water supply for Adnoc’s onshore operations, reinforcing Adnoc and Taqa’s position as responsible energy leaders and underscoring their efforts to drive sustainable initiatives that deliver long-term value.

The project will develop a centralised world-class seawater treatment facility and transportation network for operations at the Bab and Bu Hasa fields in Abu Dhabi. This project will replace the current high-salinity, deep aquifer water systems at the fields, thereby reducing water injection-related energy consumption by up to 30 per cent. The project will be connected to the grid and will receive 100 per cent of its power from clean energy sources.

Adnoc and Taqa will jointly hold a 51 per cent majority stake (25.5 per cent each) in the Project Company and the remaining 49 per cent stake has been awarded to a consortium comprised of Orascom Construction and Metito (the Consortium).

Abdulmunim Al Kindy, Adnoc Upstream Executive Director, said, “We are delighted to partner with Taqa and other industry leaders in this strategic project that will reduce our environmental footprint and unlock significant value as we continue to decarbonise and future proof our operations.”

Jasim Husain Thabet, Taqa’s Group CEO and Managing Director, said, “As a champion for low carbon power and water, Taqa is pleased to partner again with Adnoc, this time to advance the UAE’s sustainability goals by providing treated seawater for Adnoc’s onshore operations.”

“As a major utility, Taqa is especially committed to partnerships like this that use our expertise to help drive environmental stewardship while maintaining water security and supporting economic growth.”


Related articles