The Abu Dhabi National Oil Company (ADNOC) announced yesterday an innovative initiative aimed at raising efficiency in the bidding process. This program supports ADNOC’s ongoing efforts to simplify procurement contracting procedures and maximize value for purchases, suppliers and service providers interacting with them.
The program aims to unify the terms and conditions for contracting tenders for the purchase and supply of goods and services for drilling and oil fields for ADNOC’s business in various fields and stages of the value chain for the oil and gas sector, as the same terms and conditions for competitive bidding are now applied to all qualified ADNOC bidders, which reduces the schedule The timeline for legal negotiations is from months to weeks.
In order to ensure the implementation of this first-of-its-kind strategic initiative, ADNOC’s Legal Affairs, in cooperation with the Exploration, Development and Production Department and the Commercial Affairs Department, and the Enhancement of In-Country Value in the company, developed the terms, conditions and best global standard practices for the oil and gas sector for the supply of goods and services for drilling and oil fields to support procurement. As needed by ADNOC’s activities and operations across the various phases and areas of the value chain.
The opinions of pre-qualified ADNOC suppliers of goods and services on commercial terms, risks and operational requirements were also taken, and ADNOC’s unified terms and standards were discussed with contractors and service suppliers working with ADNOC.
On this occasion, Jasim Saeed, Senior Vice President Procurement at ADNOC, said: “This initiative greatly accelerates the bidding and bidding process at ADNOC. This approach reflects our efforts to develop business processes across our projects and businesses, enhancing flexibility and adapting to the demands of rapidly evolving energy markets.
We are pleased to complete this initiative in record time, and we continue to work on identifying more solutions that will achieve the mutual benefit of ADNOC, our contractors and our suppliers to enhance value during the implementation of our 2030 integrated strategy for smart growth. ”
More than 1,100 major international companies and agency firms in the UAE have agreed with ADNOC on the initiative, following two-month discussions and negotiations conducted by ADNOC’s Legal Affairs outside the bidding and bidding process cycle to ensure that ADNOC’s operations are not affected. Some of ADNOC’s largest suppliers of oilfield goods and services participate in this program, including Baker Hughes, Halliburton, Schlumberger and Weatherford.
ADNOC plans to expand the initiative to include process technology licensing agreements, and building and construction agreements, building on the success of the first phase of the program.
Relationships with suppliers
The program aims to establish ADNOC’s position in the global oil and gas sector as the best company in terms of contracting terms and procedures for the purchase of oilfield goods and services. The program also contributes to strengthening ADNOC’s relationships with its suppliers, which contributes to raising efficiency, increasing profitability, and achieving the maximum possible value from every barrel of oil produced.
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