The Abu Dhabi National Oil Company (ADNOC) has signed framework agreements for major projects with eight global engineering contractors worth up to AED3.67 billion ($1 billion).

The state-owned oil giant which pumps nearly all the oil in the UAE said the agreements were signed for concept and front-end engineering design (FEED) services for major projects.

The services contracted under the deal will primarily be carried out in the UAE and has the potential for 50 percent of its value to flow back into the economy under the oil company’s in-country value program over the agreement term between 2021 and 2026, ADNOC said in a statement on Monday.

By structuring the framework agreements with a group of top-tier contractors instead of procuring smaller individual agreements, ADNOC was able to reduce tendering cycle by months and at highly competitive rates, it said.

The framework agreements were signed with AMEC International Ltd., Fluor, McDermott, Mott MacDonald, SNC-Lavalin International Arabia Ltd.– Abu Dhabi, Technip Energies, Worley, and a joint venture between Tecnicas Reunidas and NPCC. The agreements will run for five years, with an option for a two-year extension. The eight contractors have committed to set up and run enhanced training programs to further develop local expertise and enable knowledge transfer.

As an integral part of its 2030 strategy, ADNOC is optimizing its procurement strategy to reflect market dynamics, focusing on long-term contracts with a reduced number of suppliers that provide stable and reliable delivery at highly competitive rates.

(Writing by Brinda Darasha; editing by Seban Scaria)

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