ADNOC Streamlines Oilfield Procurement Process
The Abu Dhabi National Oil Co. (ADNOC) reported Tuesday that it has implemented an initiative standardizing procurement terms and conditions across its value chain.
The new oilfield procurement process subjects all bidders to the same terms and conditions in competitive tendering and shrinks the timeline for legal negotiations from months to weeks, ADNOC pointed out in a written statement emailed to Rigzone. The firm added that more than 1,100 local and international principal companies – including oilfield service providers Schlumberger (NYSE: SLB), Halliburton (NYSE: HAL), Baker Hughes (NYSE: BKR), and Weatherford (OTCMKTS: WFTLF) – have signed up for the program.
“The approach underscores our efforts to drive commerciality across our business and proactively respond to the demands of a fast-evolving energy landscape,” remarked Jasim M. Saeed, ADNOC’s senior vice president for group procurement. “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.”
ADNOC noted the company’s Legal Function, with support from its Upstream and Commercial and In-Country Value directorates, developed global and oil and gas industry standard best practice terms and conditions for drilling and oilfield goods and services. The company units sought feedback on commercial, risk, and operational requirements from its pre-qualified goods and services providers, negotiating standardized terms with the entire market, added ADNOC.
“Standardizing the terms and conditions reduces the tender cycle period, wherein all the contractual terms and conditions are aligned and will require minimal involvement of legal advice during the actual tendering phase,” commented Kamel Jammeli, vice president of sales with Al Mansoori Specialized Engineering. “Our entities in the UAE and principals abroad will be able to better concentrate on commercial matters and scope of services rather than legal aspects. This approach advanced by ADNOC is advanced and unique.”
ADNOC stated that it plans to expand the tendering revamp initiative to include process technology licensing and construction agreements.
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Senior Editor | Rigzone