Offshore project could meet nearly 20% of the UAE’s gas demand by the second half of the next decade
The Abu Dhabi National Oil Company (ADNOC) has awarded two front-end engineering design (FEED) contracts for its offshore sour gas mega-project. The contract for the Hail and Ghasha fields was awarded to Bechtel, while TechnipFMC won the Dalma contract. Both contracts are said to be worth millions, according to a statement from ADNOC.
Collectively, the FEED contracts are said to be the largest ever awarded by an O&G firm in terms of man-hours required. ADNOC says this underlines the significance of a detailed FEED phase to optimise project cost and schedule.
“The growth in energy demand in Abu Dhabi and the wider UAE has prompted ADNOC to harness its gas resources as part of its 2030 transformational strategy. This FEED award provides ADNOC with further smart growth potential by unlocking our undeveloped sour gas reserves and will help us to deliver a key strategic imperative, which is to ensure a sustainable and economic gas supply,” said Dr. Sultan Ahmed Al Jaber, UAE Minister of State and ADNOC Group CEO.
ADNOC is also presently evaluating five technology licensors contracts, covering Gas Treatment Licensor; Sulphur Recovery Unit (SRU) Licensor; Natural Gas Liquids Licensor; Condensates Recovery – Hydro treaters – and Hydrogen Generation Licensor. These technologies are critical to the successful execution of the FEED phase.
Abdulmunim Saif Al Kindy, director of ADNOC’s Upstream business added, “The decision to award the FEED contracts came after a rigorous and extremely competitive tendering process, ensuring we will strictly manage costs through working with contractors who can deploy effective engineering and robust value-add technologies. In progressing with these projects, we will create the potential to capitalise on our success and experience in ultra-sour gas production gained from the development of the Shah field, the largest project of its kind in the world.”
ADNOC plans to implement an Integrated Project Delivery (IPD) approach at the start of the FEED phase. In doing so, it becomes one of only a handful of companies in the world to adopt such as approach, with the goal of reducing the project’s schedule, and cost, by integrating and involving relevant project stakeholders.
The award of the FEED contract follows the appointment of the project management consultancy and artificial island design and survey contracts to Artelia and KBR, formerly Kellogg Brown and Root.