Thursday, Jul 9, 2020
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Adnoc awards contracts worth $1.65 bn for gas development projects

Adnoc contracts
The contracts are awarded to Petrofac and a JV between Petrofac and Sapura Energy

The Abu Dhabi National Oil Company (Adnoc) has awarded two Engineering, Procurement and Construction (EPC) contracts worth $1.65 billion for the Dalma Gas Development Project, the media reported.

Adnoc has awarded the contracts to Petrofac and a joint venture between Petrofac and Sapura Energy.

The Dalma Gas Development Project located 190 kilometre northwest of Abu Dhabi is a key part of the Ghasha ultra-sour gas concession which is central to Adnoc’s strategic objective of enabling gas self-sufficiency for the United Arab Emirates (UAE).

Both the contracts are expected to be completed in 2022. Once operational, the Dalma Gas Development project will have a production capacity of around 340 million standard cubic feet per day of natural gas.

With regard to the EPC contracts, Yaser Saeed Almazrouei, Executive Director of Adnoc’s Upstream Directorate told the media, “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.

“Petrofac and Sapura Energy were selected to deliver this crucial project after an extremely competitive and rigorous tender process that ensures that 70 percent of the award value will flow into the UAE’s economy as In-Country Value, stimulating local economic growth and supporting the diversification of the nation’s economy in line with the leadership’s wise directives.”

Last month, Adnoc announced its plans to invest between Dh1.1 billion and Dh1.5 billion to fund an ambitious new gas station expansion slated for 2020 as part of the expansion strategy.

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