Adnoc awards $1.65bn worth of EPC contracts for gas project

Both contracts are expected to be completed in 2022

Abu Dhabi National Oil Company (Adnoc) has awarded two contracts worth $1.65bn for providing engineering, procurement and construction (EPC) services at its offshore facilities within the Dalma Gas Development Project site. The site is located about 190km northwest of the UAE capital.

According to a statement, the contracts were awarded to Petrofac Emirates, a joint venture (JV) between Petrofac and Nama Project Services, and a JV between Petrofac and Sapura Energy Berhad, through its subsidiary’s branch office in Abu Dhabi.

The Dalma project is said to be a key part of the Ghasha ultra-sour gas concession, which is billed as central to Adnoc’s strategic objective of enabling gas self-sufficiency for the UAE.

Adnoc said 70% of the total award value will flow into the UAE’s economy under its In-Country Value (ICV) programme. The firm says the programme reinforces its commitment to maximising value for the UAE as it delivers its 2030 strategy.

“This award marks another important milestone in the development of the Ghasha concession which is an integral component of our strategy to achieve gas self-sufficiency for the UAE. It demonstrates how Adnoc is effectively collaborating with strategic partners that can deploy state-of-the-art technologies and world-class expertise to accelerate the development of Abu Dhabi’s substantial gas resources,” said Yaser Saeed Almazrouei, the executive director of Upstream Directorate.

As per the terms of the $1.065bn Package B EPC contract, Petrofac will carry out the EPC of gas conditioning facilities for gas dehydration, compression and associated utilities in Arzanah Island located 80km from Abu Dhabi city. The gas will then be sent to Habshan Gas Processing Plant for further processing required to produce sales gas, condensate, and sulphur, Adnoc explained.

Commenting on winning the contract, Petrofac’s chief operating officer (engineering and construction) George Salibi remarked, “We are fully committed to supporting continued and sustainable investment in Abu Dhabi’s oil and gas industry through our strategic focus on maximising local delivery and are pleased that our approach will generate substantial In-Country Value for the local economy. These latest contract awards build on our existing relationship with Adnoc Group companies and we look forward to delivering this mega project in a safe, successful and sustainable manner.”

With the $591m Package A EPC contract, Adnoc said the Petrofac-Sapura Energy JV will execute the work on the four offshore wellhead towers, pipelines and umbilicals in Hair Dalma, Satah, and Bu Haseer fields.

As part of the selection criteria for the awards, Adnoc is said to have considered the extent to which bidders would maximise in-country value in the delivery of the project. This is a mechanism integrated into Adnoc’s tender evaluation process, designed to nurture new local and international partnerships and business opportunities, catalysing socio-economic growth and creating job opportunities for UAE nationals, stated Almazrouei.

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