Kuumar Shyam (Abu Dhabi)
Tenaris, a leading global steel pipe manufacturer and supplier, inaugurated its new Abu Dhabi industrial complex, Etihad Tubulars, in accordance with a 2019 agreement made with Abu Dhabi National Oil Company (ADNOC) as part of its longstanding 25-year partnership.
The $60 million project is spread over 200,000 square metres in Abu Dhabi Industrial City (ICAD 3) and is the second project of its kind in the UAE, with the first one being located in nearby in ICAD 1. It is a significant project implemented as part of the country’s “Make it in the Emirates” initiative or the In-Country Value (ICV) programme.
The complex symbolises some firsts. It now hosts the UAE’s first full-thread facility to locally support Oil Country Tubular Goods (OCTG). Tenaris earlier serviced OCTG field management through digitalisation as part of the RigDirect model and on-site running support. This has now taken the shape of not just in-house production at the new headquarters, but it will also be a centre for training local workforce.
“It is not just part of the ‘Make It in Emirates’ but will also create jobs for Emiratis while boosting local business,” said Salem Bafaraj, ADNOC Vice President, In-Country Value and Industrial Development, while speaking to Aletihad at the ICAD 3 facility. “By localising its supply chain, ADNOC is proudly enabling local and international companies to open high-quality manufacturing facilities in the UAE.
“ADNOC is driving real value back into the community, bringing world-leading ideas, technology and innovations that enhance our social development and bring new jobs and capabilities to local talent.
“We have been a catalyst for the UAE’s industrial and economic growth and our commitment to source Dh70 billion worth of products locally has boosted industrial capabilities and ensured that the UAE remains a global industrial hub. Since our ICV programme began in 2018, ADNOC has driven Dh187 billion back into the UAE economy. We have created employment for more than 11,500 people in the private sector.”
Renwar Berzinji, Managing Director of Tenaris and a long-time resident of the UAE, stressed on how the new facility aligns with the country’s vision, not just on the ICV aspects in “catering to upstream drilling” and other products, but also on the environmental values.
“Through the RigDirect model, we are using less consummables and hence cleaner in production. By managing waste better, we are bringing financial benefits to ADNOC worth more than Dh220 million, and a north of 200 people to be employed in this facility.”
Berzinji elaborated: “We are using what is called Dopeless Technology … basically ensuring that oil spillages and mixing into water do not occur; it is environment friendly and it helps preserve the integrity of the reservoir.”
“If we can keep all that and through the use of artificial intelligence predict and plan against overproducing, more resources can be saved,” Berzinji said.
Meanwhile, both executives said that Thursday’s opening of the full-threading capabilities was part of the original five-year agreement drawn up by ADNOC and Tenaris in 2019.
While the current numbers are private, the original reportedly $1.9b worth of partnership is due for a planned two-year extension. There are no hitches on those fronts. “The agreement was signed in 2020 after the Letter of Intent in 2019.
Then COVID and other things happened. But we have been meeting regularly, discussing our KPIs and keeping ADNOC updated,” Berzinji said.
Bafaraj nodded in agreemen and said: “We enjoy a cordial relationship as ADNOC continues to engage with all our suppliers. With this new training centre, for example, we are introducing new technology. ADNOC’s engineers and talented Emiratis who are studying engineering or working in the private sector, can boost their industrial skills and knowledge. All this will help in achieving our Net Zero targets by 2045.”
Tenaris Chairman & CEO Paolo Rocca and Chief Operating Officer Gabriel Podskubka toured the site accompanied by Yaser Al Mazrouei, ADNOC Executive Director, People, Commercial and Corporate Support, and Dr. Saleh Alhashmi, ADNOC Director, Commercial & In-Country Value Directorate, among others.