MAIRE awarded $8.7 billion contract by ADNOC for the the HAIL and GHASHA development project

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MAIRE announced that Tecnimont a part of the Integrated E&C Solutions business unit, signed a Letter of Award with ADNOC for the onshore processing plant of the Hail and Ghasha Development Project. The award was signed at ADIPEC, the world’s largest energy summit.

The Hail and Ghasha project is aimed to operate with net zero CO2 emissions, in part due to the facility’s CO2 carbon capture and recovery units, which will allow the capture and storage of CO2.

The overall EPC contract value is approximately USD 8.7 billion and project completion is expected during 2028. The scope of work includes two gas processing units, three sulphur recovery sections, the associated utilities and offsites as well as export pipelines. Tecnimont will also leverage the competences of MAIRE’s Sustainable Technology Solutions division to develop innovative digital solutions aimed at reducing emissions and optimizing energy consumption, allowing a significant efficiency of the plant in terms of opex and capex.

The engineering and procurement activities will be executed by several dedicated teams in Europe, India and the UAE, under the central coordination of MAIRE’s Milan headquarters. In particular, MAIRE’s UAE procurement hub will ensure the maximization of the local suppliers’ involvement, aimed at providing significant value to the local economy.

MAIRE has been active in the UAE since the late ‘90s, with several strategic projects in the Country for an overall total value of approximately USD 17 billion, starting from the first polyolefin plant completed in 2001 (Borouge 1). Additionally, the Group can leverage on a world class track record and experience in delivering large gas treatment plants and sulphur recovery projects.

Alessandro Bernini, MAIRE Group CEO, commented: “Today we have been awarded the largest contract ever for the MAIRE Group, a multi-billion-dollar project which will significantly boost the delivery of our 10-year strategic plan. We are honored to have achieved this great result with a leading global player such as ADNOC, as it represents further evidence of the strength of our long-lasting and fruitful relationship. This award, a landmark recognition of Made in Italy Engineering, is a demonstration not only of our leadership in sulphur recovery and in gas treatment plants but, more broadly, of our undisputed execution capabilities as well as our technological expertise in designing carbon-free industrial solutions.”

Source: Maire Tecnimont

Orascom Construction & Metito Consortium awarded a $2.4 Billion Large Scale Water Project in UAE

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A consortium of Orascom Construction and Metito will, together with the Abu Dhabi National Oil Company PJSC (ADNOC) and Abu Dhabi National Energy Company PJSC (TAQA), develop, own, and operate a large-scale seawater treatment and water transportation project worth up to $2.4 billion in the Emirate of Abu Dhabi, UAE. Orascom Construction is the consortium leader.

The greenfield project will be funded through a special purpose vehicle (SPV) on a build, own, operate, and transfer (BOOT) model for 30 years. ADNOC and TAQA will jointly hold a 51% stake in the SPV, and Orascom Construction and Metito will own 49% (24.5% each).

The mega project will comprise a greenfield seawater nanofiltration plant with a treatment capacity of more than 110 million imperial gallons per day (500,000 m3/day) in addition to seawater intake and outfall facilities, pumping stations, a water transmission pipeline of approximately 75km, and an in-field distribution network of more than 230km to support reservoir pressure maintenance in the Bab and Bu Hasa fields in Abu Dhabi.

The project will replace the current aquifer water injection systems used for maintaining reservoir pressure in ADNOC’s onshore oil fields, thereby ensuring sustainable water supply for ADNOC’s onshore operations while preserving the UAE’s natural aquifer resources. The project will also enhance energy efficiency by up to 30% and reduce ADNOC’s environmental footprint compared to the current injection system.

Osama Bishai, CEO of Orascom Construction, commented, “We are proud to partner with ADNOC and TAQA to deliver a project that is key to the sustainable development of the UAE’s oil and gas sector. We started our focus on important water projects over a decade ago and have since played a major role in undertaking some of the most complex projects in this sector. We are also very pleased to strengthen our presence in the UAE as we continue to target strategic projects in the region across sectors in which we have developed strong expertise. This project also plays a key role in our growth strategy to pursue infrastructure investments that provide both construction opportunities and long-term recurring income.”

Rami Ghandour, Metito Managing Director, emphasized, “The UAE established its name as the leader for knowledge-based, future-focused economic strategies and a leader in combating climate change and promoting water positivity.  Being a global hub for innovations and sustainable practices, this mega project is testament of how capitalizing on technology can revolutionize industry norms and practices to best preserve valuable water resources and the environment. Over the years Metito has built a strategic project portfolio of mega concession projects and iconic world and industry firsts and we are confident this will be a landmark project and a global milestone. We are honoured to be part of this.”

Source: Orascom Construction

ADNOC Awards Record $4 Billion Framework Agreements for Integrated Drilling Fluids Services

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Abu Dhabi National Oil Company (ADNOC) announced the award of three framework agreements valued at $4 billion (AED14.68 billion) for integrated drilling fluids services (IDFS) to support the ongoing expansion of its lower cost and lower-carbon intensive production capacity as it responds to growing global demand for energy. 

The awards, the largest of their kind in the industry, were awarded to ADNOC Drilling Company P.J.S.C (ADNOC Drilling), Schlumberger Middle East S.A. (SLB) and Halliburton Worldwide Limited Abu Dhabi (Halliburton). They cover ADNOC’s onshore and offshore fields and will run for five years with an option for a further two years.

Over 80% of the award value could flow back into the UAE’s economy under ADNOC’s In-Country Value (ICV) program over the duration of the agreements. Furthermore, the contractors will create job opportunities for UAE Nationals and invest in local manufacturing of equipment and chemicals required for the IDFS. 

Yaser Saeed Almazrouei, ADNOC Upstream Executive Director, said: “These record framework agreements for integrated drilling fluids services continue ADNOC’s significant investment in drilling-related services to enable the expansion of our production capacity and responsibly unlock the UAE’s leading low-cost, lower-carbon intensity hydrocarbons. In line with the wise directives of the UAE’s leadership, we are prioritizing in-country value as we respond to growing global demand for energy and these agreeements will create skilled job opportunities for UAE Nationals in the private sector, drive domestic manufacturing and support the UAE’s industrial growth.”

The framework agreements will enable investment in local manufacturing of equipment and facilities, including in Liquid Mud Plants and a Waste Management Facility, as well as key commodity chemicals. This underscores ADNOC’s efforts to create long-term opportunities in the UAE’s manufacturing sector and drive industrial growth.

ADNOC Drilling’s scope of the framework agreements is valued at up to $1.6 billion (AED5.87 billion). This reflects the company’s transformation and expansion of its service profile into a fully Integrated Drilling Services (IDS) company, following the development of its Oilfield Services division in partnership with Baker Hughes.

The framework agreements were awarded following a competitive tender process. They will enable hundreds of millions of dollars in cost savings through ADNOC’s optimized procurement approach that focuses on longer-term contracts with an optimal number of suppliers that can reliably deliver at competitive rates.

Since November 2021, ADNOC has awarded over $16 billion (AED 58.72 billion) in agreements for drilling-related equipment and services, including these awards and other agreements for wellheads, downhole completion equipment, liner hangers, cementing service, wireline logging, directional drilling and logging while drilling. The average ICV of all of these awards combined amount to 70% value flowing back ito the UAE economy, supporting manufacturing growth, employment and economic diversification. 

IDFS are necessary to drill the wells that will enable ADNOC expand its oil production capacity and drive gas self-sufficiency for the UAE. Some of these services include provision of products, engineering, technical laboratory support, filtration equipment and solid control equipment. 

Source: ADNOC

ADNOC Announces $548 Million EPC Contract for a New Main Gas Line at its Lower Zakum Field

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Abu Dhabi National Oil Company (ADNOC) announced the award of a $548 million (AED2.01 billion) contract to build a new main gas line at its Lower Zakum field offshore of Abu Dhabi. The award will increase Lower Zakum field’s gas production capacity from 430 million to 700 million standard cubic feet per day (MMSCFD), supporting ADNOC’s plans to enable gas self-sufficiency for the United Arab Emirates (UAE) and cater for increasing global energy demand.

The Engineering, Procurement and Construction (EPC) contract was awarded by ADNOC Offshore to National Petroleum Construction Company (NPCC) after a competitive tender process. Over 75% of the award value will flow back into the UAE economy under ADNOC’s In-Country Value (ICV) program and job opportunities will be created for UAE Nationals by the contractor, providing them practical exposure in executing EPC contracts.

The new pipeline will cater for the increased volume of associated gas produced by Lower Zakum field as the field’s oil production capacity increases to 450,000 barrels of oil per day by 2025. 

Yaser Saeed Almazrouei, ADNOC Upstream Executive Director, said: “This contract award will enable us to produce more gas as we increase production capacity from Lower Zakum field. This will support our integrated gas masterplan which is driving competitive gas recovery to enable gas self-sufficiency for the UAE and industrial growth, while also helping to meet the increasing global demand for energy. With over 75% in-country value resulting from the award, the project will further stimulate economic growth and create opportunities for the private sector, in line with the UAE Leadership’s wise directives.”

The project will be completed in 2025 and it will see the construction of a new subsea pipeline that will run 85 kilometers from Zakum West Super Complex to Das Island. It also includes provisions to construct, install and test a new platform at the super complex as well as a new gas receiving facility at Das Island.

Ahmad Saqer Al Suwaidi, ADNOC Offshore CEO, said: “Lower Zakum is a strategic asset for ADNOC and the UAE and working with our international partners, we will continue to responsibly unlock and maximize value from the field in line with ADNOC’s 2030 smart growth strategy. This award is an important part of the long-term development plan for the field and will help strengthen ADNOC’s position as a leading low-cost and low-carbon provider of energy for customers around the world.”

ADNOC’s gas masterplan links every part of the gas value chain to further unlock Abu Dhabi’s abundant gas reserves enabling domestic gas self-sufficiency, industrial growth and diversification, as well as to meet growing global gas demand. Natural gas is playing an increasingly important role in the energy transition as both a feedstock and a fuel as it burns with significantly lower-carbon intensity than coal. 

With this award, ADNOC Offshore and its strategic international partners have invested more than $5 billion in recent weeks in the long-term development of Abu Dhabi’s offshore operations. The awards included contracts worth more than $3.4 billion awarded to ADNOC Drilling to accelerate offshore growth activities and a $1.1 billion contract awarded to ADNOC Logistics and Services to enhance offshore operations.

Source: ADNOC

ADNOC Awards Baker Hughes Two Major Contracts Through its Local Partners

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Baker Hughes has been awarded two contracts from Abu Dhabi National Oil Company (ADNOC) this week for equipment and services across multiple upstream fields and projects in the United Arab Emirates (UAE). The contracts were announced at this year’s Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC).

As part of ADNOC’s largest ever wellheads award globally, Baker Hughes’ Surface Pressure Control (SPC) product line in the Oilfield Equipment business has been awarded a major contract for the manufacture, supply, storage, and servicing of surface wellhead and tree systems with local partner Al Ghaith Oilfield Supplies & Services Company. The contract covers ADNOC’s onshore and offshore fields in the UAE for the next 10 years, as well as a long-term service contract to cover the repair, maintenance, and spares for the project’s equipment.

In addition, Baker Hughes’ Oilfield Services (OFS) business has been awarded a contract to manufacture, supply, store, install and service liner hanger systems over five years with local partner Uni-Arab Engineering & Oilfield Service. The contract will leverage Baker Hughes’ in-country workshop and further supports the UAE’s emphasis on local manufacturing through in-country value strategy and localization.

“These are strategic deals for Baker Hughes within the UAE, strengthening our footprint and significantly increasing our presence in the region,” said Ayman Khattab, vice president of Surface Pressure Control for Oilfield Equipment at Baker Hughes. “Our localized presence and strong record of execution in the UAE makes us a partner of choice for ADNOC. We are supporting the UAE and ADNOC’s growing energy needs and committed to transforming the industry by providing reliable technology and delivering operational excellence.”

The first delivery of the surface wellheads and trees contract work will be in early 2022, and the first delivery of the liner hanger systems contract is planned for the second half of 2022.

The awards are an integral part of ADNOC’s 2030 strategy and support its supply chain and ecosystem development, local capabilities, and job creation for local talent. Additionally, the awards will help enable ADNOC’s drilling needs as it expands its production capacity. Baker Hughes’ business model supports ADNOC’s in-country value program and vendor managed inventory (VMI) service, maintaining an agreed inventory of required equipment in Abu Dhabi and allowing Baker Hughes to be more efficient and reduce delivery time.

Source: Baker Hughes