SNC-Lavalin bags FEED contract from ADNOC's Al Dhafra Petroleum

Firm to implement FEED services to develop surface facilities required to carry out processing at Phase 2 of the Haliba field

Phase 2 of the Haliba field that is located in Al Dhafra Petroleum’s concession area.
Phase 2 of the Haliba field that is located in Al Dhafra Petroleum’s concession area.

Toronto Stock Exchange-listed (TSE) engineering, procurement, and construction (EPC) firm SNC-Lavalin Group has secured a front-end engineering and design (FEED) services contract from Al Dhafra Petroleum, as the contract comes in line with the firm’s decision to exit lump-sum turnkey construction contracting and focus on its engineering services business.

Al Dhafra Petroleum is an Emirati-South Korean joint venture (JV) between Abu Dhabi National Oil Company (ADNOC) with Korea National Oil Corporation (KNOC) and Seoul-headquartered GS Energy that was established in 2014. The JV, in which ADNOC owns 60%, — with remaining 40% secured by the South Korean firms — supports its goal is to tap hydrocarbon resources in the emirate and drive a more profitable upstream business in line with its 2030 Smart Growth Strategy.

As part of the nine-month agreement, the Canadian contractor  — which posted $ 621.1m net profit in the first nine months of 2019 ending on 30 September — said that it will provide FEED services for Phase 2 of the Haliba field that is located in Al Dhafra Petroleum’s concession area.

The contract focuses on the development of surface facilities in an optimised way to handle long-term production and future production prospects near Haliba.

SNC-Lavilin’s cope of work under the contract covers verification of the conceptual studies and design, implementing FEED to develop surface facilities required for processing production from the main plant and its north and south extension areas, execution planning, and designing facilities to handle production from other prospects in the vicinity.

Speaking about the contract, president for resources at SNC-Lavalin, Craig Muir, said: “This contract is aligned with our focus to leverage our extensive expertise and experience across our comprehensive spectrum of end-to-end services to our clients.”

“Our teams will ensure we bring the technical knowhow, agility and innovative solutions that we are known for to this project.”

In October 2019, while announcing the group’s Q3 2019 and nine-month results, president and CEO of SNC-Lavalin Group, Ian L. Edwards, said: “It is still early days, but the decisions we made in July – to exit lump-sum turnkey construction contracting and reorganize the company to focus on our high-performing Engineering Services business – are demonstrating results, and I am encouraged by our progress.”

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