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ADNOC Awards Contracts Worth $3.6 Billion

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ADNOC Awards Contracts Worth $3.6 Billion

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The Abu Dhabi National Oil Company (ADNOC) has awarded three contracts for the procurement of casing and tubing, whose combined scope is Dh13.2 billion ($3.6 Billion), one of the world's largest in this category.

The will maximize value for ADNOC across its drilling value chain and underpinning its strategy to deliver a more profitable upstream business.

The contracts – which were awarded to Consolidated Suppliers Establishment, representing Tenaris S.A. (from Luxembourg); Abu Dhabi Oilfield Services Company, representing Vallourec S.A. (from France); and Habshan Trading Company, representing Marubeni Corporation (from Japan) – have a combined scope of Dh13.2 billion ($3.6 billion) and the potential to achieve In-Country Value of over 50 per cent.

This includes more than Dh367 million ($100 million) in foreign direct investment, over the next five years, to establish a state-of-the-art oil country tubular goods (OCTG) threading plant and repair centre, and a training academy in Abu Dhabi to enhance local expertise and generate value for the UAE.

Under the terms of the contracts, 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.

The award marks the first in a series of drilling-related procurement expenditures with an overall value of Dh55 billion ($15 billion) that ADNOC plans to make in the next five years and is part of its Dh486 billion five-year capital expenditure (CAPEX) approved by Abu Dhabi’s Supreme Petroleum Council (SPC) in November 2018. The other procurement categories – excluding this award – are Downhole Completion Equipment, Wellheads, and X-Mas Trees, Liner Hangers, Drilling Fluids, Directional Drilling, Cementing, and Wireline Logging.

“The award of contracts with a combined scope that is one of the world’s largest for tubing and casing follows a highly competitive bid process. It underscores ADNOC’s optimisation efforts to drive commerciality across our growing portfolio,” said Abdulmunim Saif Al Kindy, ADNOC Upstream executive director.

“These agreements will provide ADNOC with increased flexibility to proactively respond to the demands of the evolving energy landscape as we ramp up our drilling activities and deliver our 2030 strategy,” he added

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Kuwait’s Merged Warba-Gulf Bank Can Grow for 10 years without Capital Hike

The Kuwait national flag flies at half-mast as the country starts mourning the death of Kuwait's ruling Emir Sheikh Sabah al-Ahmad al-Sabah, in Kuwait City, Kuwait, September 29,2020. REUTERS/Stephanie McGehee
The Kuwait national flag flies at half-mast as the country starts mourning the death of Kuwait's ruling Emir Sheikh Sabah al-Ahmad al-Sabah, in Kuwait City, Kuwait, September 29,2020. REUTERS/Stephanie McGehee
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Kuwait’s Merged Warba-Gulf Bank Can Grow for 10 years without Capital Hike

The Kuwait national flag flies at half-mast as the country starts mourning the death of Kuwait's ruling Emir Sheikh Sabah al-Ahmad al-Sabah, in Kuwait City, Kuwait, September 29,2020. REUTERS/Stephanie McGehee
The Kuwait national flag flies at half-mast as the country starts mourning the death of Kuwait's ruling Emir Sheikh Sabah al-Ahmad al-Sabah, in Kuwait City, Kuwait, September 29,2020. REUTERS/Stephanie McGehee

The new Islamic banking entity resulting from the merger of Kuwait’s Warba Bank and Gulf Bank will be able to grow for about ten years without raising capital, Warba’s chief executive said.

Shaheen al-Ghanem told Reuters that Gulf Bank’s 7 billion dinars ($22.9 billion) in assets would grow significantly once brought under the Islamic banking framework.

"This gives us a larger market share in Kuwait," he added.

Warba Bank, which has assets of about 6 billion dinars, acquired a 32.75% stake in Gulf Bank in April for about $1.63 billion, and the two began initial steps the following month towards a merger.

Kuwait's central bank on Monday gave Gulf Bank preliminary approval to convert into a sharia-compliant bank.

Al-Ghanem said that the merger with Warba would speed up Gulf Bank's process of converting into an Islamic lender, as systems, procedures, a sharia board, products and staff were already in place.

Warba, meanwhile, is set to gain from Gulf Bank's strong retail business and its more than 50 branches, taking the combined network to about 70 and creating what al-Ghanem said was an institution with the largest branch network in Kuwait.

He said that Gulf Bank has yet to use its capacity to issue Tier 1 or Tier 2 instruments, a "hidden advantage" that the new entity must use to issue sukuk after the merger.

Kuwait hosts ten local banks – five conventional, four Islamic and one specialized lender - and local branches of foreign banks.

Al-Ghanem expects there to be more mergers among Kuwaiti banks, something he views as a healthy development.

"Many bank owners are currently thinking about their next move: remain independent or merge," he said.

In 2024, Kuwait Finance House, Kuwait’s largest Islamic bank, merged with Bahrain’s Ahli United Bank, which also owns a Kuwaiti subsidiary of the same name.