ADNOC streamlines contracting process

May 4, 2021
Abu Dhabi National Oil Co. has implemented a program to improve efficiency in its tendering process.

Offshore staff

ABU DHABI, UAEAbu Dhabi National Oil Co. (ADNOC) has implemented a program to improve efficiency in its tendering process.

This standardizes the terms and conditions for procurement of drilling and oilfield goods and services so that all pre-qualified bidders are now subject to the same terms and conditions in competitive tendering.

One benefit, according to the company, is a reduction in the timeline for legal negotiations from months to weeks.

ADNOC’s Legal Function, supported by its Upstream and Commercial & In-Country Value Directorates, developed global and oil and gas industry standard best practice terms and conditions for drilling and oilfield goods and services to support the procurement process.

It also sought feedback on commercial, risk and operational requirements from pre-qualified goods and services providers and negotiated ADNOC’s standardized terms.

Jasim M. Saeed, senior vice president, Group Procurement, said: “The approach underscores our efforts to drive commerciality across our business and proactively respond to the demands of a fast-evolving energy landscape.”

More than 1,100 international companies and United Arab Emirates agent companies have signed up to the program. Participants include Baker Hughes, Halliburton, Schlumberger, and Weatherford.

Hans Klampferer, vice president, Middle East & North Africa at Weatherford, said: “With the successful completion of this initiative, the contracting process with ADNOC has been greatly simplified and made more efficient and transparent.”

Hichem Bouhlel, Managing Director at Schlumberger, added: “We believe the resulting alignment around a set of optimized contractual terms and conditions will further enhance our strategic partnership…”

ADNOC plans to expand the initiative to encompass process technology licensing and construction agreements.