ADNOC Gives Out $1.5B In Deals For Work On Massive Gas Project

ADNOC Gives Out $1.5B In Deals For Work On Massive Gas Project
ADNOC has awarded two EPC contracts worth $1.46 billion for the Dalma gas development project.

UAE’s oil and gas giant ADNOC has awarded two EPC contracts worth $1.46 billion for the Dalma gas development project.

Dalma is part of the Ghasha Concession – the world’s largest offshore sour gas development – which is an important enabler of gas self-sufficiency for the UAE.

ADNOC said that the two EPC contracts were awarded to the National Petroleum Construction Company (NPCC) and a joint venture between Técnicas Reunidas and Target Engineering. They include the construction of gas conditioning facilities, wellhead topsides, pipelines, and umbilicals.

Package A of the two Dalma EPC contracts was awarded to NPCC and is valued at $514 million. It covers the EPC of four offshore wellhead towers, pipelines, and umbilicals in Hair Dalma, Satah, and Bu Haseer fields.

Package B, awarded to the Técnicas Reunidas and Target Engineering JV, is valued at $950 million and covers the EPC of gas conditioning facilities for gas dehydration, compression, and associated utilities on Arzanah Island located 80 kilometers from Abu Dhabi.

“The award of the Dalma EPC contracts, as well as ongoing artificial island construction and development drilling, underscore the progress of the Ghasha mega-development,” Yaser Saeed Almazrouei, ADNOC Upstream Executive Director, said.

“ADNOC and its partners remain guided by our strategic production capacity objectives and sustainability ambitions. Together, we are responsibly progressing the Ghasha mega-development to maximize value as well as support the gas self-sufficiency goal of the UAE,” he added.

Both engineering contracts are expected to be completed in 2025 and will enable the Dalma field to produce around 340 million standard cubic feet per day of natural gas. The offshore Dalma field is located 120 miles northwest of Abu Dhabi.

ADNOC has advanced orders for long-lead items and completed seven development wells there, enabling smooth and expedited project delivery.

The company is also accelerating the integration of carbon capture. As part of this, ADNOC and its partners have today awarded a contract to Technip Energies to update the front-end engineering and design for the concession.

In the Ghasha concession area, three artificial islands have already been completed, as enabling works continue. Production from the concession is expected to start around 2025, ramping up to produce more than 1.5 billion standard cubic feet per day before the end of the decade.

It is worth reminding that the Ghasha concession comprises the Hail, Ghasha, Hair Dalma, Satah, Bu Haseer, Nasr, SARB, Shuwaihat, and Mubarraz fields. The concession is operated by ADNOC which holds a 55 percent stake. Its partners are Eni with a 25 percent stake, Wintershall Dea with 10 percent while OMV and Lukoil hold a 5 percent stake each.

To contact the author, email bojan.lepic@rigzone.com


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