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ADNOC announces awards for Dalma gas development project

Published by , Editorial Assistant
Hydrocarbon Engineering,

The Abu Dhabi National Oil Company (ADNOC) has announced the award of two contracts for the construction of offshore facilities for the Dalma gas development project located about 190 km north-west of Abu Dhabi city. The Dalma project 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 UAE.

The two engineering, procurement and construction (EPC) contracts have a total value of over US$1.65 billion (AED 6.06 billion) and were awarded to Petrofac Emirates LLC and a joint venture between Petrofac and Sapura Energy Berhad through its subsidiary’s branch office in Abu Dhabi. Both contracts are expected to be completed in 2022 and will enable the Dalma gas development project to produce around 340 million standard ft3/d of natural gas.

70% of the total award value will flow into the UAE’s economy under ADNOC’s In-Country Value (ICV) programme, reinforcing ADNOC’s commitment to maximising value for the UAE as it delivers its 2030 strategy.

Yaser Saeed Almazrouei, Executive Director of ADNOC’s Upstream Directorate, said: “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% 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.”

Under the terms of the Package A EPC contract, valued at US$591 million (AED 2.17 billion), the JV will execute the engineering, procurement and construction of four offshore wellhead towers, pipelines and umbilicals in Hair Dalma, Satah, and Bu Haseer fields.

Under the terms of Package B EPC contract, valued at $1.065 billion (AED 3.9 billion) and awarded to Petrofac, the contractor will carry out the EPC of gas conditioning facilities for gas dehydration, compression and associated utilities in Arzanah Island located 80 km from Abu Dhabi city. The gas will then be sent to the Habshan Gas Processing Plant for further processing required to produce sales gas, condensate, and sulfur.

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Downstream news Middle East downstream news Downstream contract news