Abu Dhabi National Oil Company (ADNOC) awarded two contracts worth US$1.65 billion for the construction of offshore facilities for the Dalma gas development project to Petrofac and its joint venture with Sapura Energy.
The two engineering, procurement and construction (EPC) 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.
The Dalma project, located about 190 kilometers northwest of Abu Dhabi city, 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 United Arab Emirates (UAE).
Also, 70 percent 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.
Yaser Saeed Almazrouei, executive director of ADNOC’s 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.
“Petrofac and Sapura Energy were selected to deliver this crucial project after an extremely competitive and rigorous tender process that ensures that 70 percent 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.”
Under the terms of one EPC contract valued at $591 million (AED 2.17 billion) and awarded to a joint venture (JV) between Petrofac and Sapura Energy, the JV will execute the engineering, procurement and construction of four offshore wellhead towers, pipelines and umbilicals in Hair Dalma, Satah, and Bu Haseer fields.
Under the terms of the other EPC contract, valued at $1.065 billion (AED 3.9 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 sulphur.
George Salibi, Petrofac’s Chief Operating Officer – Engineering & Construction, 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.”
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.”
As part of the selection criteria for the awards, ADNOC carefully considered the extent to which bidders would maximize 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, catalyzing socio-economic growth and creating job opportunities for UAE nationals.
The successful bids by Petrofac and Sapura Energy prioritized UAE sources for materials, local suppliers and workforce, resulting in a total spend of over $1.15 billion (AED 4.2 billion) which will flow into the UAE’s economy.