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ADNOC Awards Contracts Worth $3.6 Billion

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ADNOC Logo
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ADNOC Awards Contracts Worth $3.6 Billion

ADNOC Logo
ADNOC Logo

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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Business

TotalEnergies Posts 17% Drop in Net Profit to $13.1 Bn

FILE PHOTO: The logo of French oil and gas company TotalEnergies is seen on a building in Rueil-Malmaison, near Paris, France, April 14, 2025. REUTERS/Stephanie Lecocq/File Photo
FILE PHOTO: The logo of French oil and gas company TotalEnergies is seen on a building in Rueil-Malmaison, near Paris, France, April 14, 2025. REUTERS/Stephanie Lecocq/File Photo
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TotalEnergies Posts 17% Drop in Net Profit to $13.1 Bn

FILE PHOTO: The logo of French oil and gas company TotalEnergies is seen on a building in Rueil-Malmaison, near Paris, France, April 14, 2025. REUTERS/Stephanie Lecocq/File Photo
FILE PHOTO: The logo of French oil and gas company TotalEnergies is seen on a building in Rueil-Malmaison, near Paris, France, April 14, 2025. REUTERS/Stephanie Lecocq/File Photo

French energy giant TotalEnergies said Wednesday that its net profit fell 17 percent last year, reflecting declines in oil prices even as it increased production.

Profit was down to $13.1 billion, but the company will raise its final 2025 dividend payout by 5.6 percent, to 3.40 euros per share.

"With cash flow stable at $7.2 billion, TotalEnergies once again demonstrates its ability to offset lower hydrocarbon prices thanks to accretive growth in its upstream production of 3.9 percent in 2025, exceeding the guidance of above 3 percent," chief executive Patrick Pouyanne said in a statement.

According to AFP, the company will also continue to buy back its own shares to support its stock price, spending $3 billion to $6 billion this year assuming oil prices stay in a range of $60 to $70 a barrel.

Like other oil majors, TotalEnergies is grappling with low oil and gas prices as a result of higher output by OPEC+ nations since last year.

They are looking to regain market share amid strong competition from producers outside the group, such as the United States, Canada and Guyana.

Pouyanne said TotalEnergies invested $17.1 billion last year, of which 37 percent went to new oil and gas projects.

He also said $3.5 billion was invested in "low-carbon energies", mainly electricity.

Last October, TotalEnergies was convicted by a French court of "misleading commercial practices" by overstating its climate pledges and ordered it to remove some claims.

Activists called it the first such ruling worldwide against a major oil company for climate misinformation.

Business

EU Makes 150-Million-Dollar Grant to Egypt’s Energy Sector

The signing of the agreements took place during the “Egypt Sustainable Energy Outlook 2040” conference co-hosted by the EU and the Egyptian government in Cairo. Photo: Egyptian government
The signing of the agreements took place during the “Egypt Sustainable Energy Outlook 2040” conference co-hosted by the EU and the Egyptian government in Cairo. Photo: Egyptian government
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EU Makes 150-Million-Dollar Grant to Egypt’s Energy Sector

The signing of the agreements took place during the “Egypt Sustainable Energy Outlook 2040” conference co-hosted by the EU and the Egyptian government in Cairo. Photo: Egyptian government
The signing of the agreements took place during the “Egypt Sustainable Energy Outlook 2040” conference co-hosted by the EU and the Egyptian government in Cairo. Photo: Egyptian government

Egypt and the European Union (EU) have signed a grant agreement worth €90 million ($107.2 million) that will be managed by the European Investment Bank (EIB) to enhance investments in the electricity grid in Egypt and develop renewable energy capabilities.

A separate €35 million ($41.7 million) grant agreement was signed on Tuesday for Norway’s Scatec to support its green ammonia project in Ain Sokhna.

The signing of the agreements took place during the “Egypt Sustainable Energy Outlook 2040” conference co-hosted by the EU and the Egyptian government in Cairo.

Egyptian Minister of Planning, Economic Development, and International Cooperation Rania Al-Mashat said the transition toward sustainable, secure, and efficient energy systems represents one of the main drivers for achieving comprehensive development in Egypt.

Al-Mashat hailed the partnership between Egypt and the EU, as well as their shared commitment to supporting the energy transition, especially in light of the accelerating global changes that make it necessary to strike a balance between economic growth, energy security, and emissions reduction.

She said the Egyptian state has adopted an ambitious vision for the energy sector through 2040, based on expanding renewable energy sources, enhancing energy efficiency, and maximizing the use of diverse resources. This would strengthen Egypt’s position as a regional energy hub in the Eastern Mediterranean and support the achievement of the Sustainable Development Goals.

She also said the ministry plays a central role in coordinating international partnerships and directing investments toward national priorities, especially energy transition, in close cooperation with European institutions such as EIB and European Bank for Reconstruction and Development (EBRD).

She added that the Nexus of Water, Food, and Energy (NWFE) platform serves as a leading national model linking water, food, and energy sectors, having mobilized about $5 billion over three years to deliver 4.2 GW of private-sector renewable energy projects and strengthen Egypt’s role in climate finance and green development.

In a related development, Energean International CEO Nicolas Katcharov told Reuters on Tuesday that Egypt has directed international oil companies to double production by 2030, saying existing contracts must be revised to spur new investment.

Katcharov said the low gas prices that supported earlier development phases had "expired,” making it necessary to ‌update terms to ‌encourage companies to ‌deploy ⁠capital and ‌boost production at brownfield sites.

He also said gas flows from Israel to Egypt had risen, with the pipeline ⁠now operating at full capacity.

Business

Saudi Industrial Production Ends 2025 with Strong 8.9% Growth

Workers are seen at a Saudi Aramco facility. (Aramco)
Workers are seen at a Saudi Aramco facility. (Aramco)
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Saudi Industrial Production Ends 2025 with Strong 8.9% Growth

Workers are seen at a Saudi Aramco facility. (Aramco)
Workers are seen at a Saudi Aramco facility. (Aramco)

Saudi Arabia’s industrial sector posted an exceptional performance at the end of 2025, with the Industrial Production Index recording annual growth of 8.9 percent in December compared with the same month a year earlier, according to data released by the General Authority for Statistics (GASTAT).

The increase reflects a broad-based recovery in key economic activities, led by mining and quarrying as well as manufacturing, reinforcing the sector’s role as a major pillar of the national economy.

Oil production

Mining and quarrying was the main driver of the overall index, posting a strong annual increase of 13.2 percent by December. The surge was largely attributed to higher crude oil output, which rose to 10.1 million barrels per day, compared with 8.9 million barrels per day in the same period last year.

On a monthly basis, the index remained relatively stable, edging up by just 0.3 percent from November.

Manufacturing

The manufacturing sector also showed resilience, recording annual growth of 3.2 percent, supported by strong performance in chemical and food-related activities.

The manufacture of chemicals and chemical products emerged as a key growth engine, rising by 13.4 percent, followed by food manufacturing, which grew by 7.3 percent year on year.

Month on month, the manufacturing index maintained positive momentum with a 0.3 percent increase. Food manufacturing alone jumped by 9.6 percent, while chemical products rose by 2.8 percent compared with November 2025.

Utilities and public services

In utilities, water supply, sewerage, waste management, and remediation activities posted robust annual growth of 9.4 percent.

In contrast, electricity, gas, steam, and air-conditioning supply declined by 2.5 percent compared with December 2024.

On a monthly basis, both sectors contracted, with water-related activities falling by 7.2 percent and electricity and gas by 13.1 percent compared with November 2025, suggesting the impact of seasonal factors or scheduled maintenance.

Oil and non-oil balance

Overall, the data point to a balanced distribution of growth across Saudi Arabia’s economic pillars. Oil-related activities recorded annual growth of 10.1 percent, while non-oil activities expanded by a steady 5.8 percent.

In the short term, non-oil activities outperformed on a monthly basis, rising by 0.4 percent, while oil activities slipped slightly by 0.3 percent, underscoring the Kingdom’s ongoing economic diversification strategy.