NMDC wins $1.36bn contract for artificial islands construction in Abu Dhabi

The project will take 38 months for completion and employ 3,500 people at peak construction

Abu Dhabi National Oil Company (Adnoc) has said that it had awarded a $1.36 billion contract to UAE-based firm National Marine Dredging Company (NMDC) to build 10 artificial islands, two causeways and expand an existing island as part of the first phase of a gas concession.

Under the terms of the contract, work will include dredging, land reclamation and marine construction, Adnoc said in a statement. It is said to support the Ghasha Concession, which consists of the Hail, Ghasha, Dalma, Nasr, and Mubarraz offshore sour gas fields.

During the agreement signing, HE Dr Sultan Ahmed Al Jaber, ADNOC Group CEO said: “This award accelerates the development of the Hail, Ghasha and Dalma sour gas offshore mega-project, which is an integral part of Adnoc’s 2030 smart growth strategy.”

“NMDC was selected after a rigorous and competitive tender process. The award of this project to a UAE company will generate substantial in-country value, supporting local economic growth,” he pointed out. “In addition, it demonstrates the rapid progress ADNOC is making to leverage and create value from Abu Dhabi’s substantial, untapped, hydrocarbon resources.”

The project is expected to take 38 months to complete and will employ 3500 people at peak construction time. For the bid, NMDC prioritised UAE sources for materials, as well as the use of mostly local suppliers, manufacturers and workforce which resulted in a total local spend of over $1 billion. Adnoc said that NMDC will also work with international partners to deliver the project.

“Enhancing in-country value is an important part of our work plan in the company, as it is for Adnoc,” said HE Mohammed Thani Murshed Al Rumaithi, the chairman of NMDC, speaking about the win. “We will achieve this by spending almost $1 billion of the contract award in the UAE and creating additional employment opportunities for citizens in the maritime sector, in order to compete globally.”

“As one of the world’s largest sour gas projects it will make a significant contribution to the UAE’s objective to become gas self-sufficient and transition to a potential net gas exporter,” concluded HE Dr Al Jaber.


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