The UAE’s state-owned oil company The Abu Dhabi National Oil Company (ADNOC) has adopted a new innovative initiative in its tender process which will enhance its approach to procurement and maximize value for ADNOC and its community of suppliers and service providers.
The new program will standardize the terms and conditions for the procurement of drilling and oilfield goods and services across ADNOC’s entire value chain lowering legal negotiation timelines from months to weeks as all ADNOC pre-qualified bidders would have the same terms and conditions in competitive tendering.
ADNOC’s Legal Function collaborated with its Upstream and Commercial & In-Country Value Directorates to develop global and oil and gas industry standard best practice terms and conditions for drilling and oilfield goods and services.
This first-of-its-kind strategic initiative will support procurement of ADNOC’s entire value chain, sought feedback on commercial, risk and operational requirements from ADNOC’s pre-qualified community of goods and services providers and negotiated ADNOC’s standardized terms with the entire market.
Jasim M. Saeed, Senior Vice President, Group Procurement at ADNOC, said, “This initiative significantly speeds up ADNOC’s tendering process. The approach underscores our efforts to drive commerciality across our business and proactively respond to the demands of a fast-evolving energy. We are very pleased to have completed this initiative in a timely manner and we continue to work on identifying more win-win solutions for us and our contractors and suppliers to enhance value as we deliver our 2030 strategy.”
The initiative strategically positions ADNOC as a global industry leader for best-in-class oilfield procurement while strengthening its relationships with its suppliers and contributes to more efficient operations, which ultimately maximizes the value from every barrel it produces.
The program has already seen signups from 1,100+ international principal companies and UAE agent companies. Some of ADNOC’s largest providers of oilfield goods and services, including Baker Hughes, Halliburton, Schlumberger, and Weatherford, have signed up for the program.
ADNOC plans to expand the initiative to include process technology licensing agreements and construction agreements as it builds on the success of this first phase.