Habshan Awarded by ADNOC for its New OCTG Project
ADNOC has recently awarded three Emirati companies, including Habshan Trading Company, for the procurement of casing and tubing to build an OCTG threading plant and repair centre. The scope of the three awarded contracts is one of the world’s largest in this category.
The Abu Dhabi National Oil Company (ADNOC) has signed three contracts to establish a state-of-the-art oil country tubular goods (OCTG) threading plant and repair centre. The project also includes a training academy in Abu Dhabi to enhance local expertise. The three awards have a combined allocation of AED 13.2 billion and the potential to achieve In-Country Value of over 50 percent. This includes more than AED 367 million in foreign direct investment, over the next five years.
The three contracts were awarded to:
The Japanese Steel Expertise
Part of the Al Mazroui Group, Habshan Trading Company (HTC) is one of the major suppliers of industrial equipment to the oil, gas and power sectors in the United Arab Emirates. Committed to provide its customers with top quality products and services, the company represents Marubeni-Itochu Steel Corporation (MISI) in the country. Based in Japan, this global leading trading company specialises in steel construction materials. MISI provides commercial and logistical support to some of the world’s largest petroleum companies.
Its Tubular Products Division contributes to the stable and efficient operations of its customers by supplying all varieties of steel pipe and incidental services. The primary focus of the division is on the fields of oil and natural gas development. Its ultimate goal is to make a solid contribution to the stable supply of energy around the world.
Generating Value for the UAE
The three companies will supply a combined total of 1 million metric tons of casing and tubing – which by comparison is equivalent to the distance from Abu Dhabi to Houston – over 5 years, to support ADNOC’s drilling activities. Abdulmunim Saif Al Kindy, ADNOC Upstream Executive Director declared that “these agreements will provide ADNOC with increased flexibility to proactively respond to the demands of the evolving energy landscape”.
With more than AED 6.6 billion value potential to flow back into the UAE’s economy, it is expected that the awards will give significant stimulus to the country’s products and services. “They will also generate substantial In-Country Value and provide attractive foreign direct investment opportunities for the private sector”, declared Abdulmumin Saif Al Kindy.
Combined, the three contracts awarded have one of the world’s largest investment in this category, maximising value for ADNOC and underpinning its strategy to deliver a more profitable upstream business. The attribution of the contracts followed a robust tendering process which included a rigorous assessment of how much of the contract value would support the growth and diversification of the UAE’s economy through ADNOC’s In-Country Value (ICV) Program.
In 2018, ADNOC introduced an ICV Program for its suppliers. This procurement-led initiative aims to boost ADNOC’s ICV contribution by focusing on local supplier selection and the localisation of critical functionalities in the oil and gas industry. By nurturing new local and international partnerships and business opportunities, it is expected to catalyse socio-economic growth and create job opportunities for Emiratis.
The Abu Dhabi National Oil Company (ADNOC) has signed three contracts to establish a state-of-the-art oil country tubular goods (OCTG) threading plant and repair centre. The project also includes a training academy in Abu Dhabi to enhance local expertise. The three awards have a combined allocation of AED 13.2 billion and the potential to achieve In-Country Value of over 50 percent. This includes more than AED 367 million in foreign direct investment, over the next five years.
The three contracts were awarded to:
- Consolidated Suppliers Establishment, representing Tenaris S.A. (from Luxembourg)
- Abu Dhabi Oilfield Services Company, representing Vallourec S.A. (from France)
- Habshan Trading Company, representing Marubeni-Itochu Steel Corporation Inc. (from Japan).
The Japanese Steel Expertise
Part of the Al Mazroui Group, Habshan Trading Company (HTC) is one of the major suppliers of industrial equipment to the oil, gas and power sectors in the United Arab Emirates. Committed to provide its customers with top quality products and services, the company represents Marubeni-Itochu Steel Corporation (MISI) in the country. Based in Japan, this global leading trading company specialises in steel construction materials. MISI provides commercial and logistical support to some of the world’s largest petroleum companies.
Its Tubular Products Division contributes to the stable and efficient operations of its customers by supplying all varieties of steel pipe and incidental services. The primary focus of the division is on the fields of oil and natural gas development. Its ultimate goal is to make a solid contribution to the stable supply of energy around the world.
Generating Value for the UAE
The three companies will supply a combined total of 1 million metric tons of casing and tubing – which by comparison is equivalent to the distance from Abu Dhabi to Houston – over 5 years, to support ADNOC’s drilling activities. Abdulmunim Saif Al Kindy, ADNOC Upstream Executive Director declared that “these agreements will provide ADNOC with increased flexibility to proactively respond to the demands of the evolving energy landscape”.
With more than AED 6.6 billion value potential to flow back into the UAE’s economy, it is expected that the awards will give significant stimulus to the country’s products and services. “They will also generate substantial In-Country Value and provide attractive foreign direct investment opportunities for the private sector”, declared Abdulmumin Saif Al Kindy.
Combined, the three contracts awarded have one of the world’s largest investment in this category, maximising value for ADNOC and underpinning its strategy to deliver a more profitable upstream business. The attribution of the contracts followed a robust tendering process which included a rigorous assessment of how much of the contract value would support the growth and diversification of the UAE’s economy through ADNOC’s In-Country Value (ICV) Program.
In 2018, ADNOC introduced an ICV Program for its suppliers. This procurement-led initiative aims to boost ADNOC’s ICV contribution by focusing on local supplier selection and the localisation of critical functionalities in the oil and gas industry. By nurturing new local and international partnerships and business opportunities, it is expected to catalyse socio-economic growth and create job opportunities for Emiratis.
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