UAE's ADNOC awards $324mln contracts to increase efficiency of assets

The contracts were awarded to Galfar Engineering and Contracting (WLL - Emirates) and Robt Stone (Middle East LLC)

  
ADNOC Distribution service station. Image for illustrative purposes.

ADNOC Distribution service station. Image for illustrative purposes.

ADNOC/Handout via Thomson Reuters Zawya

The UAE's Abu Dhabi National Oil Company (ADNOC) has awarded contracts worth $324 million (AED 1.19 billion) to optimize onshore field operations and enhance efficiencies.

ADNOC Onshore, a subsidiary of ADNOC, awarded the three contracts which will see the procurement and construction (PC) of flowlines and wellhead installations across several onshore oil fields in Abu Dhabi. The contracts are expected to help unlocking the full potential of the oil company's assets and fields to deliver increased value its shareholders and contribute to its objective to create a more profitable upstream business,  according to a statement from ADNOC.

The contracts also include the engineering, procurement, and construction (EPC) of a new bypass system to provide critical backup for the existing crude receiving stations at the Jebel Dhanna and Fujairah export terminals.

According to the statement, the contracts were awarded to Galfar Engineering and Contracting (WLL – Emirates) and Robt Stone (Middle East LLC).

Over 70 percent of the combined award value will flow back into the United Arab Emirates’ (UAE) economy under ADNOC’s In-Country Value (ICV) program, reinforcing ADNOC’s commitment to maximizing value for the nation.

Yaser Saeed Almazrouei, Executive Director of ADNOC’s Upstream Directorate, said: “These awards further highlight ADNOC’s drive to invest responsibly to unlock greater value from our assets and resources and build long-term resilience as we deliver our 2030 strategy. The contracts follow a competitive tender process that ensures that substantial value will flow back into the UAE through our ICV program, reinforcing ADNOC’s commitment to supporting local business and stimulating the growth and diversification of the nation’s economy.”

The two PC contracts awarded for flowlines and wellheads are split into two parts. The first contract, valued at approximately $71 million (AED 261.2 million), is awarded to Galfar Engineering & Contracting. The contractor will procure and construct flowlines and wellhead installations for the ADNOC Onshore Asab and Sahil fields.

The second contract, valued at approximately $168 million (AED 618.2 million), is awarded to Robt Stone (Middle East LLC). The contractor will procure and construct flowlines and wellhead installations for the ADNOC Onshore Bab field.

The scope of work includes residual engineering, procurement, construction, pre-commissioning, and commissioning of natural oil producer wells and water injection wells at the respective fields. Both contracts are expected to be completed in five years.

The third contract, the EPC awarded to Galfar Engineering and Contracting, is valued at approximately $84 million (AED 309.1 million). It will create a new bypass system to provide critical backup for ADNOC Onshore’s existing crude receiving stations at the Jebel Dhanna and Fujairah export terminals. The project is expected to be completed in 30 months.

(Writing by Seban Scaria; editing by Daniel Luiz)

(seban.scaria@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.

© ZAWYA 2020

More From Energy