Adnoc simplifies tendering process by standardising legal terms

The Abu Dhabi National Oil Company streamlined its tendering process to make it quicker and easier for companies to bid for work.

Adnoc standardised terms and conditions used for the procurement of drilling and oilfield equipment and services. This means that all of the company's pre-qualified bidders are now subject to the same agreements, which could cut the timeline for legal negotiations from months to weeks, the company said.

“This initiative significantly speeds up Adnoc's tendering process," Jasim Saeed, Adnoc's senior vice president of 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. 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.”

Adnoc is in the midst of delivering a 2030 strategy that involves significant capital expenditure. The company has a target of increasing capacity to 5 million barrels per day, from about 2.8 million bpd currently.

It is also planning substantial investment in downstream projects, including a new Ruwais Derivatives Park being developed jointly with state holding company ADQ that is building the infrastructure for a major chemicals hub.

Last year, the UAE's Supreme Petroleum Council approved Adnoc's Dh448bn investment programme over the next five years. In December, the company said it will expand its In-Country Value localisation programme, with a view to directing about Dh160bn back into the local economy.

Adnoc developed a set of terms and conditions based on industry best practice and consulted with its supply chain before implementing them, the company said. More than 1,100 of its local and international partners have now signed up to the terms, including some of the biggest global oilfields services companies such as Schlumberger, Baker Hughes, Halliburton and Weatherford.

The initiative is “a win-win” for Adnoc and its suppliers, Samir Al Gharbi, general manager of Gulf Automation Services and Oilfields Supplies, said.

"We believe that applying the same terms and conditions for all pre-qualified bidders is a very helpful and practical tendering methodology.”

The deal means companies “will require minimal involvement" from lawyers when tendering for new projects, Kamel Jammeli, vice president of sales at Al Mansoori Specialised Engineering, said.

“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.”

Weatherford's vice-president for the Middle East and North Aftrica, Hans Klampferer, said the contracting process "has been greatly simplified and made more efficient and transparent” by the move.