Abu Dhabi National Oil Company (ADNOC) has announced the awarding of contracts totaling AED720 million ($196.2 million) for the local production of a diverse array of products throughout its value chain. This announcement was made during ADNOC’s Business Partnership Forum, which took place alongside ADIPEC 2024.
According to a statement, the contracts, awarded to 11 companies, are part of ADNOC’s In-Country Value (ICV) program and align with the Make it in the Emirates (MIITE) initiative. Additionally, ADNOC’s partners unveiled eight new manufacturing facilities in the UAE at ADIPEC, bringing the total number of facilities established through the ICV program to 16 this year and 33 overall since MIITE began.
Promoting commercial opportunities
During the Business Partnership Forum, ADNOC showcased a variety of commercial opportunities within its value chain and urged the private sector to take advantage of these prospects to establish and expand manufacturing capabilities in the UAE. The company also introduced its “Responsible Sourcing Programme,” a new initiative designed to enhance transparency and promote sustainable procurement practices across its supply chain.
Commitment to sustainable value
ADNOC Executive Director for People, Commercial & Corporate Support, Yaser Saeed Almazrouei, emphasized that in collaboration with private sector partners, ADNOC is committed to fostering sustainable value for the UAE and creating pathways for local businesses and individuals to prosper. He noted that through the In-Country Value program, the company is enhancing the UAE’s manufacturing capabilities, increasing self-sufficiency, and reinforcing its role as a catalyst for national growth and diversification. He also extended an invitation to both UAE and international companies to collaborate with ADNOC and explore the long-term manufacturing opportunities being generated.
Collaborative efforts for socioeconomic development
The Business Partnership Forum convened suppliers, UAE-based enterprises, and government representatives to discuss opportunities and establish public-private partnerships aimed at advancing socioeconomic development and strengthening the UAE’s industrial landscape.
A panel discussion titled “Advancing Partnerships to Sustain Mutual Growth” was featured at the forum, including insights from Ahmed Helal Al Blooshi, executive director of the Economic Strategy Sector at the Abu Dhabi Department of Economic Development; Hareb Al Muhairi, executive director at the Abu Dhabi Investment Office; and Mohamed Eissa Al Refaei, executive director of the Business Networking Sector at the Abu Dhabi Chamber of Commerce and Industry.
Economic impact of the ICV program
Since its launch in 2018, ADNOC’s ICV program has successfully injected AED187 billion ($51 billion) back into the UAE’s economy and has decreased the country’s reliance on imports by fostering local manufacturing capabilities. Building on this momentum, ADNOC aims to contribute an additional AED178 billion to the UAE’s economy by 2028.
The ICV program has also generated 14,000 job opportunities for Emirati talent in the private sector in collaboration with NAFIS, with a goal of creating another 13,500 new jobs by 2028.
Fleet expansion initiative
Earlier this week, ADNOC Logistics & Services (ADNOC L&S) announced the signing of contracts valued at $4.4 billion to construct 23 supertankers in collaboration with several international companies.
This initiative involves an expansion of the company’s fleet through shipbuilding contracts, which encompass 10 new LNG carriers, nine very large ethane carriers, and four very large ammonia carriers. This strategic move not only aims to reduce emissions on a global scale but also addresses the increasing demand for energy.
Expanding market reach
Through its joint venture, AW Shipping, ADNOC L&S has awarded contracts worth $1.9 billion for the construction of nine very large ethane carriers (VLECs) and four very large ammonia carriers (VLACs) with Jiangnan Shipyard in China. Additionally, ADNOC L&S signed contracts totaling $2.5 billion with South Korea’s Samsung Heavy Industries and Hanwha Ocean to build up to 10 LNG carriers, further strengthening its capacity to meet the global demand for low-carbon energy.
The company has implemented an integrated strategy to leverage global expertise, which enhances the skills of its workforce, consisting of over 10,000 individuals and more than 3,200 seafarers. It is also dedicated to bolstering the local economy through the In-Country Value Enhancement Programme, achieving a contribution rate of 86 percent in 2023.
Long-term agreements and future deliveries
During ADIPEC 2024, ADNOC announced its signing of the first long-term sales and purchase agreement for the lower-carbon Ruwais liquefied natural gas (LNG) project, currently under development in Al Ruwais Industrial City, Abu Dhabi. This agreement formalizes the previous heads of agreement between ADNOC and SEFE that was announced in March.
Under this 15-year purchase agreement, ADNOC will supply SEFE Marketing and Trading Singapore, a subsidiary of Germany’s SEFE Securing Energy for Europe GmbH, with 1 million tons of LNG per annum. The LNG will primarily be sourced from the Ruwais LNG project, with deliveries expected to commence in 2028, coinciding with the start of its commercial operations.
To date, ADNOC has allocated over seven million tons per annum of the Ruwais LNG project’s production capacity to international customers through various long-term agreements.
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