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Adnoc terminates Petrofac’s contract for Dalma gas project

Adnoc Petrofac
Petrofac's scope of work in the project was valued at $1.5billion

Abu Dhabi National Oil Company (Adnoc) has terminated the recently awarded contracts  for the development of Dalma gas project, media reports said. The contracts  were worth $1.65-billion.

Adnoc had awarded the contracts to Petrofac Emirates and Sapura Energy two months ago. In February, Yaser Saeed Almazrouei, executive director of ADNOC’s upstream directorate, told the media, “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 Emirates was committed to  work with Adnoc on the Dalma gas development project, media reports said. The project comprised two packages, media reports said. Petrofac’s scope of work in the project was valued at $1.5billion. It is reported that Petrofc Emirates and Sapura Energy were informed of Adnoc’s intention to terminate the Dalma gas development project. The two projects were originally awarded in February this year.

The Dalma gas project is an important of the Ghasha ultra-sour gas concession. In turn, the concession is vital to UAE’s goal of enhancing the gas sector, Adnoc said.

Petrofac Emirates was established in 1981 and has established itself as a top international service provider to the energy sector. Petrofac Emirates said in a company statement, “Petrofac is committed to working with ADNOC over the coming weeks to explore alternative options to deliver this project in a way that supports their strategic objectives within the current challenging environment. Petrofac continues to progress execution of its remaining group backlog of around $7 billion as planned and is still progressing with tendering for major contracts in Abu Dhabi. However, it anticipates this development may have an impact on the timing of their awards.”

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