18 February, 2020

Petrofac awarded two contracts by ADNOC for mega offshore gas project in the UAE

$1.65bln worth of contracts awarded for ADNOC’s Dalma Gas Development Project

Image used for illustrative purpose. Oil rig tender type is working on oil and gas remote platform to completion gas reservoir well in oil field or oil and gas company industrial.

Image used for illustrative purpose. Oil rig tender type is working on oil and gas remote platform to completion gas reservoir well in oil field or oil and gas company industrial.

Getty Images

Petrofac Emirates, a part of UK-based oil and gas contractor Petrofac, said on Tuesday that it has been awarded two lump sum contracts worth about $1.65 billion by the UAE's Abu Dhabi National Oil Company (ADNOC).

The company said in a statement that it will provide engineering, procurement (including novated long lead items), construction, transportation, offshore installation and commissioning contracts for ADNOC's Dalma Gas Development Project.

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 work scope encompasses offshore packages at Arzanah island and surrounding offshore fields, located around 140 km off the north-west coast of Abu Dhabi, the statement noted.

The first package, valued at $1.065 billion, is for gas processing facilities at Arzanah island. Under the terms of the 33-month contract, the scope of work includes inlet facilities with gas processing and compression units, power generation units, utilities and other associated infrastructure.

The 30-month second package, valued at $591 million, would be executed in Joint Venture with SapuraKencana HL Sdn. Bhd, the statement said, adding that the the scope of work includes three new well-head platforms, removal and replacement of an existing topside, new pipelines, subsea umbilicals, composite and fibre optic cables.

George Salibi, Chief Operating Officer - Engineering & Construction, said the company will "generate substantial In-Country Value for the local economy" through the contract awards.

Established in the UAE in 1991, with operational centres in Abu Dhabi and Sharjah, Petrofac has executed 11 major EPC projects in-country to date. Recent projects include the Upper Zakum UZ750 project, Qusahwira Field Development Phase II, the Satah Al Razboot (SARB) Package 3, the contract for expansion of compression facilities at the Bab field and development of the Bab Habshan-1 project.

(Writing by Madhura Deulgaonkar; Editing by Anoop Menon)

(anoop.menon@refinitiv.com)

Disclaimer: This article is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Read our full disclaimer policy here.

© Thomson Reuters Projects News 2020