The Abu Dhabi National Oil Company (ADNOC) has awarded three contracts for the procurement of casing and tubing, with a combined scope of AED 13.2 billion ($3.6 billion), according to a company statement.

The contracts were awarded to consolidated suppliers establishment, representing Tenaris (from Luxembourg); Abu Dhabi Oilfield Services Company, representing Vallourec (from France); and Habshan Trading Company, representing Marubeni Corporation (from Japan).

Under the terms of the contracts, the three companies will supply a combined total of 1 million metric tons of casing and tubing over 5 years, to support ADNOC’s drilling activities.

ADNOC clarified that this is the first in a series of drilling-related procurement expenditures that it plans to make in the next 3 years, noting that the combined scope of the three contracts awarded is one of the world’s largest in this category, maximizing value across its drilling value chain and underpinning its strategy to deliver a more profitable upstream business.

“With more than AED 6.6 billion ($1.8 billion) value potential to flow back into the UAE’s economy, the awards will give significant stimulus to the country’s products and services and create additional skilled employment opportunities for UAE nationals,” ADNOC stated.

Contracts are set to achieve an in-country value of over 50%. This includes more than AED 367 million in foreign direct investments (FDI), over the next five years, to establish modern oil country tubular goods threading plant and repair center, and a training academy in Abu Dhabi.

“The awards complement ADNOC’s substantial upstream growth plans and drive to deliver integrated drilling services as it plans to increase its conventional drilling by 40% by 2025 and substantially ramp up the number of its unconventional wells. This is part of its target to achieve 4 million barrels of oil production capacity per day (mmbpd) by the end of 2020 and 5 mmbpd by 2030,” the company added.