Adnoc awards $ 1.46 billion contracts to increase production at Dalma field

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Abu Dhabi National Oil Company awarded two engineering, supply and engineering contracts worth $ 1.46 billion to increase production from the Dalma gas field, part of the largest concession in offshore sour gas to the world.

The National Petroleum Construction Company of the United Arab Emirates and a joint venture between Spain’s Técnicas Reunidas and Target Engineering have won the EPC contracts for the development of the Dalma field.

The first package awarded to NPCC is worth $ 514 million and covers the construction of four offshore wellhead towers, pipelines and infrastructure in the Hair Dalma, Satah and Bu Haseer fields.

The second package, worth $ 950 million and awarded to JV Técnicas Reunidas-Target Engineering, concerns gas conditioning facilities on the island of Arzanah located 80 kilometers from Abu Dhabi.

“The award of Dalma’s EPC contracts along with the ongoing construction of man-made islands and development drilling underscore the progress of Ghasha’s mega-development,” said Yaser Almazrouei, upstream executive director of Adnoc.

“As we continue to execute this strategic project, we are ensuring that it delivers substantial value to the country to drive economic growth and support the goals of the UAE 50 Principles.”

One of the cornerstones of the UAE’s jubilee celebrations is the 50’s Projects – a series of initiatives aimed at boosting economic growth and preparing for a rapidly changing future. In September, the United Arab Emirates set out the 50’s Principles to set the country’s economic, political and developmental roadmap for the next five decades.

About 70% of the value of the project price will be fed back into the UAE economy, Adnoc said.

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As a result of the development work performed by the contractors, the Dalma field will have the capacity to produce approximately 340 million cubic feet of natural gas per day by 2025. The field is located approximately 190 kilometers northwest of the capital of the United Arab Emirates.

“Adnoc and its partners remain guided by our strategic production capacity objectives and our sustainable development ambitions. Together, we responsibly advance Ghasha mega-development to maximize value and support the UAE’s gas self-sufficiency goal, ”Almazrouei said.

Adnoc also awarded a contract to Technip Energies for the design work of the Ghasha megaproject.

Technip Energies will seek to accelerate carbon capture at the site and optimize costs, Adnoc said.

First production from the Ghasha concession is expected to begin in 2025 and will increase to 1.5 billion cubic feet per day by the end of the decade. Adnoc built three man-made islands to support production.

Ghasha’s ultra-sour gas concession includes the Hail, Ghasha, Dalma, Nasr, Sarb, Bu Haseer, Shuweihat and Mubarraz offshore sour gas fields in Abu Dhabi.

Adnoc retains a majority stake in the concession, while the Italian Eni, the German Wintershall Dea, the Austrian OMV and the Russian Lukoil hold the remaining shares.

Updated: November 18, 2021, 07:03

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