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|06 February, 2019

UAE's ADNOC awards $1.36bln contract for artificial islands

National Marine Dredging Company wins deal to build 10 islands to support offshore Ghasha concession

An aerial view shows artificial islands on Kashagan offshore oil field in the Caspian sea. Image for illustrative purposes.

An aerial view shows artificial islands on Kashagan offshore oil field in the Caspian sea. Image for illustrative purposes.

REUTERS/Stringer .

The Abu Dhabi National Oil Company (ADNOC) announced on Wednesday the award of a 5 billion UAE dirham ($1.36 billion) contract to local firm National Marine Dredging Company (NMDC) to build multiple artificial islands to support the first phase of development of the Ghasha Concession.

The islands will provide the infrastructure required to further develop, drill and produce gas from the concession, which consists of the Hail, Ghasha, Dalma, Nasr and Mubarraz offshore sour gas fields, ADNOC said in a press statement

The statement said NMDC was awarded the dredging, land reclamation and marine construction contract to construct 10 new artificial islands and two causeways. The work also involves expanding an existing island, Al Ghaf.

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The project is expected to take 38 months to complete and is expected to achieve In-Country Value (ICV) of over 70 percent, with  local spend projected to touch 3.62 billion dirhams (almost $1 billion), the statement added.

UAE Minister of State and ADNOC Group CEO, Sultan Ahmed Al Jaber,was quoted in the statement as saying the award will accelerate “the development of the Hail, Ghasha and Dalma sour gas offshore mega-project,” which forms part of ADNOC’s 2030 smart growth strategy, and contribute to “the UAE’s objective to become gas self-sufficient and transition to a potential net gas exporter.”

ADNOC recently awarded stakes in the Ghasha Concession to Italy’s Eni (25 percent), Germany’s Wintershall (10 percent) and Austria’s OMV (5 percent). The mega-project is expected to produce over 1.5 billion cubic feet of gas per day and more than 120,000 barrels per day of oil and high-value condensates when it comes on stream at around the middle of the next decade.

(Writing by Anoop Menon; Editing by Michael Fahy)

(anoop.menon@refinitiv.com)


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