Adnoc awards $1.65 billion contracts for Dalma gas project

Abu Dhabi: The Abu Dhabi National Oil Company (Adnoc) on Tuesday announced the award of two contracts for the construction of offshore facilities for the Dalma gas development project located about 190 kilometers northwest of Abu Dhabi city.

The two contracts have a total value of over $1.65 billion (Dh6.06 billion) and were awarded to Petrofac Emirates LLC (Petrofac) and a joint venture between Petrofac and Sapura Energy Berhad (Sapura Energy) 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 cubic feet per day of natural gas.

70 per cent of the total award value will flow into the UAE’s economy under Adnoc’s In-Country Value (ICV) program, reinforcing Adnoc’s commitment to maximizing value for the UAE as it delivers its 2030 strategy.

“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,” said Yaser Saeed Al Mazrouei, executive director of Adnoc’s Upstream Directorate.

“Petrofac and Sapura Energy were selected to deliver this crucial project after an extremely competitive and rigorous tender process that ensures that 70 per cent of the award value will flow into the UAE’s economy,” he said.

Under the terms of the first package, valued at $591 million (Dh2.17 billion) and awarded to a joint venture between Petrofac and Sapura Energy, the joint venture will execute the engineering, procurement and construction of four offshore wellhead towers, pipelines and umbilicals in Hair Dalma, Satah, and Bu Haseer fields.

For the terms of second package contract, valued at $1.065 billion (Dh3.9 billion) and awarded to Petrofac, the contractor will carry out the engineering, procurement and construction of gas conditioning facilities for gas dehydration, compression and associated utilities in Arzanah Island located 80 kilometers from Abu Dhabi city. The gas will then be sent to Habshan Gas Processing Plant for further processing required to produce sales gas, condensate, and sulfur.

The successful bids by Petrofac and Sapura Energy prioritised UAE sources for materials, local suppliers and workforce, resulting in a total spend of over $1.15 billion (Dh4.2 billion) which will flow into the UAE’s economy.

Gas self-sufficiency

The Dalma gas development project is a key component of the Ghasha mega-project project, which is expected to produce over 1.5 billion cubic feet per day (bscfd) of gas – enough to provide electricity for more than two million homes.

The Ghasha project has the potential to meet nearly 20 per cent of the UAE’s gas demand by the second half of this decade. In addition, more than 120,000 barrels per day of oil and high-value condensates are expected to be produced when the project is fully on stream.