Wednesday 8 April 2020

Adnoc awards $1.65bn EPC project services contracts

ABU DHABI, February 19, 2020

The Abu Dhabi National Oil Company (Adnoc) said it has awarded two contracts worth $1.65 billion for providing engineering, procurement and construction (EPC) services at its offshore facilities within Dalma Gas Development Project site located about 190 km northwest of the UAE capital.

The Dalma project is a key part of the Ghasha ultra-sour gas concession which is central to Adnoc’s strategic objective of enabling gas self-sufficiency for the UAE.

The contracts were awarded to Petrofac Emirates - a joint venture between the British oilfield services firm Petrofac and Nama Project Services, a leading local service provider to the energy industry across the UAE - and a joint venture between Petrofac and Sapura Energy Berhad 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 (mmscfd) of natural gas.

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

On the new contracts, Yaser Saeed Almazrouei, the executive director of Upstream Directorate, 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."

"It demonstrates how Adnoc is effectively collaborating with strategic partners that can deploy state-of-the-art technologies and world-class expertise to accelerate the development of Abu Dhabi’s substantial gas resources," he added.

Under the terms of the Package B EPC contract, valued at $1.065 billion, Petrofac will carry out the EPC of gas conditioning facilities for gas dehydration, compression and associated utilities in Arzanah Island located 80 km 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, said the Abu Dhabi group.

On the big win, Petrofac’s chief operating officer (engineering and construction) George Salibi said: "We are fully committed to supporting continued and sustainable investment in Abu Dhabi’s oil and gas industry through our strategic focus on maximising local delivery and are pleased that our approach will generate substantial In-Country Value for the local economy."

"These latest contract awards build on our existing relationship with Adnoc Group companies and we look forward to delivering this mega project in a safe, successful and sustainable manner," he stated.

On the Package A EPC contract valued at $591 million, Adnoc said the Petrofac-Sapura Energy JV will execute the work on the four offshore wellhead towers, pipelines and umbilicals in Hair Dalma, Satah, and Bu Haseer fields.

As part of the selection criteria for the awards, the Abu Dhabi group had carefully considered the extent to which bidders would maximise In-Country Value in the delivery of the project.

This is a mechanism integrated into Adnoc’s tender evaluation process and is aimed at nurturing new local and international partnerships and business opportunities, catalysing socio-economic growth and creating job opportunities for UAE nationals, remarked Almazrouei.

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 which will flow into the UAE’s economy, he stated.

According to him, 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 as In-Country Value, stimulating local economic growth and supporting the diversification of the nation’s economy in line with the leadership’s wise directives.

Tan Sri Shahril Shamsuddin, President and Group CEO of Sapura Energy, said: "We are committed to delivering the Dalma Gas Development Project with our hallmark technical capabilities in offshore engineering and construction."

"Our priority is to support Adnoc in unlocking value from their asset," he added.-TradeArabia News Service


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