Abu Dhabi's ADNOC awards $1.46bln EPC contracts for Dalma Gas Project

70% of the total award value to flow back into the domestic economy

  
General view of the ADNOC headquarters is seen in Abu Dhabi, United Arab Emirates, December 23, 2018. Image used for illustrative purpose.

General view of the ADNOC headquarters is seen in Abu Dhabi, United Arab Emirates, December 23, 2018. Image used for illustrative purpose.

REUTERS/Hamad I Mohammed

The Abu Dhabi National Oil Company (ADNOC) has awarded two engineering, procurement and construction (EPC) contracts totaling $1.46 billion for the Dalma Gas Development Project.

Abu Dhabi is looking at ways to boost its gas output as it targets self-sufficiency in the coming decades.  As part of its integrated gas strategy launched in 2018 to become a key exporter of natural gas in the coming years, ADNOC is looking at new technologies to expand into unconventional gas, tap into gas caps and unlock new reservoirs.

The two EPC contracts have been awarded to National Petroleum Construction Company (NPCC) and a joint venture (JV) between Técnicas Reunidas and Target Engineering, the state-owned energy producer said in a statement on Thursday.

The NPCC award is valued at $514 million and covers the EPC of four offshore wellhead towers, pipelines and umbilicals in Hair Dalma, Satah, and Bu Haseer fields.

The Técnicas Reunidas and Target Engineering JV award is valued at $950 million and covers the EPC of gas conditioning facilities for gas dehydration, compression and associated utilities on Arzanah Island located 80 kilometers from Abu Dhabi.

In line with the UAE's in-country value (ICV) program, 70 percent of the total award value will flow back into the domestic economy, the company said.

The Dalma field is part of the Ghasha Concession which is the world’s largest offshore sour gas development and an important enabler of gas self-sufficiency for the United Arab Emirates (UAE).

Both engineering contracts are expected to be completed in 2025 and will enable the Dalma field to produce around 340 million standard cubic feet per day (mmscfd) of natural gas.

The offshore Dalma field is located 190 kilometers northwest of the Emirate of Abu Dhabi. ADNOC has advanced orders for long lead items and completed seven development wells at Dalma, enabling smooth and expedited project delivery.

(Writing by Brinda Darasha; editing by Seban Scaria) 

brinda.darasha@refinitiv.com

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