ADNOC picks Petrofac, Sapura Energy for $1.7bn EPC contracts

Companies to construct offshore facilities for the Dalma Gas Development Project, a part of Ghasha ultra-sour gas concession

Both contracts are expected to be completed in 2022.
Both contracts are expected to be completed in 2022.

The Abu Dhabi National Oil Company (ADNOC) has awarded two engineering, procurement, and construction (EPC) contacts valued at $1.7bn (AED6.2bn) for its Dalma Gas Development Project to Jersey-based Petrofac and a joint venture of Petrofac and Malaysian oil and gas firm Sapura Energy Berhad.

The companies will construct offshore facilities for the Dalma Gas project, which is located about 190km northwest of Abu Dhabi city. The project is an important part of the Ghasha ultra-sour gas concession, which is an essential element of ADNOC’s strategic objective that aims to make the UAE gas self-sufficient.

Both contracts are expected to be completed in 2022 and will facilitate the Dalma Gas Development project to produce around 340 million standard cubic feet per day (mmscfd) of natural gas.

Under ADNOC’s In-Country Value (ICV) programme, 70% of the total award value will flow into the UAE’s economy, strengthening ADNOC’s commitment to maximising value for the UAE as it delivers its 2030 strategy.

Speaking on the contract award, executive director of ADNOC’s Upstream Directorate, Yaser Saeed Almazrouei, said: "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.

"Petrofac and Sapura Energy were selected to deliver this crucial project after an extremely competitive and rigorous tender process.”

Package A of the EPC contract valued at $591m (AED2.2bn), which is being awarded to the JV between Petrofac and Sapura Energy, covers EPC of four offshore wellhead towers, pipelines, and umbilicals in Hair Dalma, Satah, and Bu Haseer fields.

Meanwhile, Package B EPC contract that is valued at $1.1bn (AED3.9bn) that was awarded to Petrofac includes EPC of gas conditioning facilities for gas dehydration, compression, and associated utilities in Arzanah Island, which is 80km 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 sulphur.

Commenting on the contract win, chief operating officer of Engineering and Construction at Petrofac, George Salibi, said that the company will deliver the “megaproject in a safe, successful and sustainable manner".

Meanwhile, president and group CEO of Sapura Energy, Tan Sri Shahril Shamsuddin, said that the firm will use its “hallmark technical capabilities in offshore engineering and construction” to deliver the project.

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