TotalEnergies Strengthens its Position in the Emirates through its Partnership in Ruwais LNG

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TotalEnergies joins, with a 10% interest, the Ruwais LNG project alongside national company ADNOC (60%), Shell (10%), bp (10%) and Mitsui (10%).

Launched by ADNOC in June 2024, Ruwais LNG is a liquefied natural gas (LNG) project located in Al Ruwais Industrial city, in Abu Dhabi. The project includes two liquefaction trains with a total capacity of 9.6 million tons per year. Start-up is expected in the second half of 2028.

The project applies the highest standards to reduce emissions: its full-electric liquefaction trains will be supplied with clean power by the UAE’s grid, making it one of the world’s lowest-carbon intensity LNG plants. The facility will also leverage the latest technologies to enhance safety, drive efficiency and minimize emissions.

“We are delighted to join forces with our long-standing partner ADNOC on the development of this new LNG project. Last year at COP28, TotalEnergies and ADNOC both committed to lead the Oil & Gas Decarbonization Charter to reduce the industry’s GHG emissions. With Ruwais LNG, we are putting this principle into practice with one of the world’s lowest-carbon intensity LNG plants, allowing natural gas to fully play its role of transition fuel”, said Patrick Pouyanné, Chairman and CEO of TotalEnergies.

“We are delighted to welcome bp, Mitsui & Co., Shell, and TotalEnergies as partners in ADNOC’s Ruwais LNG project, which will be one of the world’s lowest carbon-intensive LNG facilities. As natural gas demand continues to increase, this world-class project will enable us to provide more lower-carbon gas to meet growing demand today while helping the world transition to a cleaner energy future. Additionally, the project will accelerate development in Al Ruwais Industrial City, boost the local industrial ecosystem and create more skilled private sector jobs for UAE Nationals”, said His Excellency Dr. Sultan Ahmed Al Jaber, ADNOC Managing Director and Group CEO.

Source: TotalEnergies

TA’ZIZ and Reliance Partner with UAE’s Shaheen on $2 Billion Chemicals Project in Ruwais

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Abu Dhabi Chemicals Derivatives Company RSC Ltd (“TA’ZIZ”) announced that Shaheen Chem Holdings Investment LLC (Shaheen), will join the proposed TA’ZIZ and Reliance Industries Limited TA’ZIZ EDC & PVC joint venture, that will construct and operate a world-scale Chlor-Alkali, Ethylene Dichloride (EDC) and Polyvinyl Chloride (PVC) facility, at the TA’ZIZ Industrial Chemicals Zone, in Ruwais. 

The TA’ZIZ Industrial Chemicals Zone is a joint venture between ADNOC and ADQ. With an investment of more than $2 billion (AED7.34 billion), the project will supply local manufacturers, replacing chemicals currently imported, while also exporting to meet growing demand for these chemicals globally. TA’ZIZ will provide new opportunities for local manufacturers, supporting growth of their knowledge and capabilities, catalyzing local industrial development. 

Shaheen brings extensive knowledge of the local market and joins the project with a focus on utilizing production for use in local supply chains. The agreement marks the first direct investment by a privately-owned United Arab Emirates (UAE) company in the TA’ZIZ Industrial Chemicals Zone. It also follows the investment agreements between TA’ZIZ and eight UAE-based investors in December 2021, which marked the first domestic Public Private Partnership (PPP) in Abu Dhabi’s downstream and petrochemicals sector.

Khaleefa Yousef Al Mheiri, TA’ZIZ Acting Chief Executive Officer, said: “We are delighted to welcome Shaheen as a strategic partner in TA’ZIZ. This strategic agreement further consolidates TA’ZIZ’s position as the sought-after partner for local and international investment in the UAE’s chemicals industry. The partnership supports our national strategy to drive the growth and diversification of the country’s industrial base, strengthen domestic supply chains and enable the private sector to “Make it in the Emirates”, in line with the leadership’s wise directives.”

The chemicals to be produced by the TA’ZIZ EDC and PVC project have a wide range of industrial applications and will create opportunities for export, as well as providing local industry with a source of critical raw materials manufactured in the UAE for the first time.

Walid Azhari, Managing Director of Shaheen, said: “We are honored to partner with TA’ZIZ and Reliance in this world class industrial plant which will include the largest Chlor Alkali plant in the world. We are looking forward to working with our partners during the development, construction and operation stages of the project. This project will be the cornerstone for many exciting downstream opportunities which will create a whole new industrial cluster in the UAE, in line with the Abu Dhabi Economic Vision 2030”.

Investment in the production of chemicals is a priority for the UAE’s industrial growth strategy, championed by the Ministry of Industry and Advanced Technology, which aims to raise the UAE’s industrial sector’s contribution of national GDP to AED300 billion by 2031. Chemicals are an attractive sector given projected demand growth globally and the opportunity local production creates to grow the UAE’s industrial base.

Chlor-Alkali enables the production of caustic soda, crucial to the production of aluminum, and EDC is used in the production of PVC for a wide range of industrial and consumer products including pipes, windows, cables, films and flooring.

TA’ZIZ comprises three zones, the first of which is an Industrial Chemicals Zone that will host chemicals production, with seven world-scale projects already in the design phase. The second is a Light Industrial Zone, which will be home to downstream conversion industries that will convert the outputs of the Chemicals Zone into consumable products. The third is an Industrial Services Zone that will house a variety of companies providing the services required by the TA’ZIZ industrial zones and the wider Ruwais Industrial Complex. 

All projects in the TA’ZIZ Industrial Chemicals Zone are subject to customary regulatory approvals.

Source: ADNOC

ADNOC Continues to Drive Upstream Growth as it Awards $658 Million Framework Agreements

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Abu Dhabi National Oil Company (ADNOC) announced the award of framework agreements valued at $658 million (AED 2.4 billion) for cementing services as it continues to invest to enable drilling growth and expand its crude oil production capacity.  The framework agreements were awarded to Haliburton Worldwide Limited Abu Dhabi (Halliburton), Baker Middle East (Baker), Emirates Western Oil Well Drilling & Maintenance Co. (Emirates Western), NESR Energy Services (NESR) and Emjel Oil Field Services (Emjel), following a competitive tender process. 

These awards cover ADNOC’s onshore and offshore fields and will run for five years with an option for a further two years. Over 65% of the award value could flow back into the United Arab Emirates (UAE) economy under ADNOC’s In-Country Value program over the duration of the agreements. Furthermore, skilled employment opportunities will be created for UAE Nationals by the successful companies who will also work to identify local manufacturing opportunities.

Yaser Saeed Almazrouei, ADNOC Upstream Executive Director, said: “The awards for cementing services will support the ongoing expansion of ADNOC’s drilling activities as we grow our production capacity, strengthening our position as a reliable global supplier of some of the world’s most carbon efficient barrels. In line with the UAE Leadership’s wise directives and as part of our strategy, we are prioritizing in-country value  and these awards will enable careers for UAE Nationals and new opportunities for the private sector, directly supporting the objectives of the UAE’s Principles of the 50.” 

The smart nature of the awards will enable ADNOC to realize hundreds of millions of dollars in cost savings. As an integral part of its 2030 strategy, ADNOC is optimizing its procurement strategy to reflect market dynamics, focusing on long-term contracts with an optimized number of suppliers that provide stable and reliable delivery at highly competitive rates.

The award for cementing services takes the total value of ADNOC’s drilling-related framework agreements and procurement awards since November 2021 to over $8.5 billion (AED31.2 billion). These awards will support ADNOC’s requirement to drill thousands of new wells as it increases its crude oil production capacity to five million barrels per day (mmbpd) by 2030 and drives gas self-sufficiency for the UAE. 

Cementing is an important step in the drilling and completion of oil and gas wells. It involves mixing together cement slurry, additives and water and pumping the mixture between the rock formation and well casing to protect and seal the wellbore.

Source: Adnoc

ADNOC Onshore Awards $227M Contract for Enhanced Recovery at Bab Oilfield

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ADNOC Onshore has awarded a contract worth $227 million (AED834 million) for enhanced oil recovery (EOR) that will see first-of-its-kind technology deployed at AbuDhabi’s giant Bab field.

Designed by ADNOC, the technology will use advanced polymers and CO2 captured from our Carbon Capture Utilization and Storage (CCUS) facility, Al Reyadah, to boost recoverable reserves up to 70% while unlocking additional barrels of Murban crude.

The project marks another step towards boosting oil production capacity to 5 million barrels per day by 2030.

The construction contract, awarded to M/s RobtStone (ME) LLC, will see more than 60% of the value flow back into the UAE’s economy under ADNOC’s flagship In-Country Value program. 

The award also increases ADNOC’s ability to safely and commercially store greater amounts of CO2, supporting our sustainability ambitions.

Source: ADNOC

ADNOC L&S Signs Agreement for Second Long-term Charter of a Floating Storage Unit with AG&P as it Delivers on its Ambitious Growth Plans

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ADNOC Logistics & Services (ADNOC L&S) and Atlantic Gulf & Pacific International Holdings (AG&P), a leading downstream LNG platform and infrastructure development company have signed a charter agreement to utilize ADNOC L&S’s LNG Carrier Ish as a Floating Storage Facility (FSU). 

Under the terms of the agreement, starting Q3 2022, AG&P will use the carrier for the first LNG Import Terminal in the Philippines at Ilijan in Batangas Bay (PHLNG). The agreement, which is valid for 11 years with the option of extension by 4 years, strengthens an existing relationship between the two companies and builds on a previous agreement between the two companies to provide another FSU in India, signed in 2021. It continues ADNOC L&S’ ongoing drive to diversify its customer base and enhance revenue streams. 

The vessel is part of a fleet of eight LNG vessels operated by ADNOC L&S and is currently under contract to ADNOC LNG, a subsidiary of ADNOC. Upon the conclusion of its contract with ADNOC LNG, the Ish will be deployed to AG&P as a floating storage facility, extending the vessel’s life by at least 11 years and up to 15 years, and bolstering ADNOC L&S’ recently established FSU revenue stream, while providing PHLNG’s customers with resiliency of supply. 

Capt. Abdulkareem Al Masabi, CEO of ADNOC L&S said: “This agreement builds on our existing partnership with AG&P and demonstrates our continued focus on maximizing value from our assets. By providing AG&P with another flexible storage solution for their new LNG terminal, we are able to extend the operational life of this vessel, unlocking incremental value and new opportunities for growth.  Furthermore, as the provider of world-class shipping, offshore logistics and onshore services, we are growing our global footprint, delivering cutting-edge technology and services to our partners. Our project with AG&P in the Philippines will contribute to the economic growth of the country by leveraging the potential of clean LNG for power generation.”

The supply, operations and maintenance of the FSU will be undertaken by ADNOC L&S while the conversion of the LNG Carrier (LNGC) to FSU will be completed by AG&P subsidiary, GAS Entec. PHLNG will be the 5th FSU-based LNG import terminal in the world, after those in India, Malta, Malaysia, and Bahrain. The integrated PHLNG offshore/onshore import terminal will have an initial capacity of 5 million tonnes per annum (MTPA). 

Mr. Joseph Sigelman, Chairman & CEO, AG&P Group, said: “PHLNG will store LNG and dispatch natural gas, providing a critical, clean transition fuel for the Philippines. We are privileged to have ADNOC Logistics and Services, a foremost global leader in LNG logistics, as our partner to transition the Philippines to cleaner fuel through AG&P’s PHLNG import terminal.”

The Ish is part of ADNOC L&S’ diverse fleet of more than 200 vessels, which, when combined with its 1.5 million square meter logistics base in Abu Dhabi and its integrated logistics capabilities, make the company the region’s leading marine logistics provider. 

The Ish was built in 1995 in Japan and has a capacity of 137,315.444 cubic meters of LNG. At the time of its inauguration was one of the largest LNG vessels in the world.

Source: ADNOC

ADNOC Awards $1.94 Billion Framework Agreements to Enable Drilling Growth

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Abu Dhabi National Oil Company (ADNOC) announced framework agreement awards valued at $1.94  billion (AED 7.1  billion) to enable drilling growth. The awards build on ADNOC’s recent record investments in drilling-related equipment and services and support its strategy to boost crude oil production capacity to 5 million barrels per day (mmbpd) by 2030 and drive gas self-sufficiency for the United Arab Emirates (UAE). 

The framework agreements for wireline logging and perforation services are the largest of such awards in the oil and gas industry and were awarded to ADNOC Drilling Company P.J.S.C (ADNOC Drilling), Schlumberger Middle East S.A (Schlumberger), Haliburton Worldwide Limited Abu Dhabi (Halliburton) and Weatherford Bin Hamoodah Company LLC (Weatherford), following a competitive tender process. Wireline logging involves continuously measuring the properties of rock formations to guide drilling operations while perforation creates tunnels in the wellbore to allow fluid to flow in from the reservoir.

His Excellency Dr. Sultan Ahmed Al Jaber, Minister of Industry and Advanced Technology and ADNOC Managing Director and Group CEO, said: “The framework agreements announced today are a continuation of ADNOC’s unprecedented investment in services to enable the expansion of drilling activity required to responsibly unlock the UAE’s leading low-cost and low-carbon intensity oil as well as the nation’s gas resources. Not only do these awards support our 2030 strategy, they are expected to deliver over 80% of In-Country Value to the UAE and align with the UAE’s ‘Principles of the 50’ economic blueprint for sustainable growth.”

The framework agreement awards cover ADNOC’s onshore and offshore fields and will run for five years with an option for a further two years. Furthermore, skilled employment opportunities will be created for UAE Nationals by the successful companies who will also work to identify local manufacturing opportunities. 

ADNOC Drilling’s share of the awards is the largest and it covers services including cased hole and open hole as well as perforation. This reflects the company’s expanded service profile as a result of its transformation into a fully Integrated Drilling Services (IDS) company following the award to Baker Hughes of a 5% share in the company in 2018.

Yaser Saeed Almazrouei, ADNOC Upstream Executive Director, said: “The award to ADNOC Drilling demonstrates its robust offering and capabilities as well as its integral role in ADNOC’s future drilling activities. The awards to all four companies will deliver sustantial in-country value,  and create new job opportunities for UAE Nationals, in line with the Leadership’s wise directives.” 

The framework agreement awards will support ADNOC’s requirement to drill thousands of new wells to expand its production capacity and remain a leading low-cost, low-carbon oil producer. The awards will also enable hundreds of millions of dollars in cost savings. 

As an integral part of its 2030 strategy, ADNOC is optimizing its procurement strategy to reflect market dynamics, focusing on long-term contracts with an optimized number of suppliers that provide stable and reliable delivery at highly competitive rates. In November 2021, ADNOC announced investments of almost $6 billion (AED22 billion) in the form of procurement awards to top-tier contractors for Wellheads and related components, Downhole Completion Equipment (DCE) and related services, and Liner Hangers and Cementing Accessories.

Source: ADNOC

ADNOC announced the award of a $946 million (AED3.47 billion) EPC contract for the strategic long-term development of its Umm Shaif field

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Abu Dhabi National Oil Company (ADNOC) announced the award of a $946 million (AED3.47 billion) Engineering, Procurement, and Construction (EPC) contract for the strategic long-term development of its Umm Shaif field. The investment supports ADNOC’s oil production capacity plans of five million barrels per day (mmbpd) by 2030 while ensuring energy security for the United Arab Emirates (UAE) and partners around the world.

The ‘Long-Term Development Plan – Phase 1’ (LTDP-1) EPC contract was awarded by ADNOC Offshore to National Petroleum Construction Company (NPCC) after a competitive tender process. The scope of the award covers engineering, procurement, fabrication, installation and commissioning activities required to maintain Umm Shaif’s 275,000 barrels per day (mbd) crude oil production capacity, increase efficiencies and enhance the field’s long-term potential. 

Significantly, over 75% of the total award value will flow back into the UAE economy under ADNOC’s In-Country Value (ICV) program, ensuring that more economic value remains in the country from the contracts it awards. This reinforces ADNOC’s commitment to the UAE’s ‘Principles of the 50’, the economic blueprint for sustainable growth announced by the UAE’s leadership in 2021.

Yaser Saeed Almazrouei, ADNOC Upstream Executive Director, said: “This important award for the long-term development of ADNOC’s pioneer offshore Umm Shaif field will maximize efficiencies while maintaining future output and supporting ADNOC’s strategic objective of five million barrels of oil production capacity a day by 2030. In addition, the development plan for Umm Shaif underpins ADNOC’s commitment to maintain its position as a leading low-cost oil producer and strengthens our role as a reliable energy provider to customers around the world. 

“We are pleased to be collaborating again with NPCC as a contractor bringing leading expertise and advanced technologies along with a proven industry track record. Importantly, the very high In-Country Value generated from this contract award will stimulate new business opportunities for the private sector and, in line with the directives of the UAE’s wise Leadership, support the UAE’s economic growth as we look to our next 50 years.” 

The EPC contract, which is due to be completed in 2025, comprises two packages for network expansion and new well-head towers. The first package includes modifications and extension of existing facilities with installation of new subsea cables and pipelines for debottlenecking. The second package includes the design of three lean well-head towers with associated new pipelines. The contract incorporates ‘fit for the future’ technology including rigless electrical submersible pumps (ESP) and other digital field technologies, which will increase efficiencies while maintaining current production capacity.

Ahmad Saqer Al Suwaidi, CEO of ADNOC Offshore, said: “This contract is an important contributor to ADNOC Offshore’s plans as we build our production capacity to over 2 million barrels a day in the coming years in support of ADNOC’s smart growth strategy. The award follows a highly competitive bid process, which included a rigorous assessment of how much of the contract value would support the growth and diversification of the UAE’s economy through ADNOC’s ICV Program.” 

Umm Shaif is ADNOC’s most historic offshore asset. 2022 marks the 60th anniversary of the UAE’s first oil export of Umm Shaif crude oil (July 1962). Continuing investment and development at Umm Shaif ensures responsible maximization of profitability, enabling greater value for the UAE, ADNOC and its partners.  

Source: ADNOC

ADNOC Onshore has awarded contracts worth $169 million (AED 621 million) for well testing services

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ADNOC Onshore has awarded contracts worth $169 million (AED 621 million) for well testing services as we continue to work towards 5 million barrels per day oil production capacity by 2030.

The services will apply best-in-class technology to optimize the performance of our onshore reservoirs, while minimizing the environmental impact of the process.

Over 60% of the value will flow back into the UAE’s economy under ADNOC’s flagship In-Country Value program to support growth and diversification.

The contracts of up to five years were awarded to NESR Energy Services, AlMansoori Production Services and Al Ahlia Oilfields Development Company following a competitive tender process.

Source: ADNOC

ADNOC Announces Gas Discovery Offshore of Abu Dhabi

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The Abu Dhabi National Oil Company (ADNOC) announced the discovery of natural gas resources offshore of the Emirate of Abu Dhabi. 

Interim results from the first exploration well in Abu Dhabi’s Offshore Block 2 Exploration Concession operated by Eni, indicate between 1.5 – 2 trillion standard cubic feet (TSCF) of raw gas in place. 

This discovery marks the first from Abu Dhabi’s offshore exploration concessions, highlighting the continued success of ADNOC’s block bid rounds and its expanded approach to strategic partnerships. A consortium led by Eni and PTT Exploration and Production Public Company Limited (PTTEP) were awarded the exploration rights for Offshore Block 2 in 2019 as part of ADNOC’s debut competitive block bid round. 

His Excellency Dr. Sultan Ahmed Al Jaber, Minister of Industry and Advanced Technology and ADNOC Managing Director and Group CEO, said: “The discovery of material natural gas resources in Offshore Block 2 underscores how ADNOC’s expanded approach to strategic partnerships is enabling us to accelerate the exploration and development of Abu Dhabi’s untapped hydrocarbon resources and create long-term value for the UAE, in line with the Leadership’s wise directives. We congratulate our valued partners, Eni and PTTEP, on this achievement and we look forward to continuing to work with all our strategic partners to sustainably unlock Abu Dhabi’s hydrocarbon resources and stay ahead of the world’s growing demand for lower-carbon energy.” 

Offshore Block 2 covers an area of 4,033 square kilometers northwest of Abu Dhabi. The discovery in the block was enabled by new insights from the world’s largest combined onshore and offshore three-dimensional (3D) mega seismic survey currently underway in Abu Dhabi.

Yaser Saeed Almazrouei, ADNOC Upstream Executive Director, said: “The positive interim results recorded by our partners, Eni and PTTEP, in the exploration of Offshore Block 2 follows the recent significant discovery in Onshore Block 4, highlighting the continued success of ADNOC’s accelerated exploration and development program. Both discoveries leveraged insights from ADNOC’s ongoing 3D mega seismic survey, underpinning the important role the survey is playing for us and our strategic partners as it utilizes state-of-the-art technologies to help identify new hydrocarbon resources across Abu Dhabi.” 

Drilling operations continue to reach deeper formations to fully unlock the resource volume in Offshore Block 2 and further explore the promising potential across the block as well as across Offshore Blocks 1 and 3 exploration concession areas, which were also awarded to Eni and PTTEP.

This achievement follows the announcement in December 2021 of the discovery of up to 1 billion barrels of oil equivalent (BBOE) in Onshore Block 4 Exploration Concession, operated by INPEX/JODCO.

ADNOC launched Abu Dhabi’s first and second competitive block bid rounds in 2018 and 2019 respectively, offering a set of major onshore and offshore blocks to international companies, on behalf of the Government of Abu Dhabi. Based on existing data from detailed petroleum system studies, seismic surveys, exploration and appraisal wells data, estimates suggest the blocks hold multiple billion barrels of oil and multiple trillion cubic feet of natural gas.

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

ADNOC Awards $1.46 Billion EPC Contracts for the Dalma Gas Development Project

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The Abu Dhabi National Oil Company (ADNOC) announced , the award of two engineering, procurement and construction (EPC) contracts totaling $1.46 billion (AED5.36 billion) for the Dalma Gas Development Project. The Dalma field is part of the Ghasha Concession which is the world’s largest offshore sour gas development and an important enabler of gas self-sufficiency for the United Arab Emirates (UAE).

The two EPC contracts, awarded to National Petroleum Construction Company (NPCC) and a joint venture (JV) between Técnicas Reunidas and Target Engineering, include the construction of gas conditioning facilities, wellhead topsides, pipelines and umbilicals. Seventy percent of the award value will flow back into the UAE’s economy under ADNOC’s successful In-Country Value (ICV) program, reinforcing ADNOC’s commitment to ensuring more economic value remains in the country from the contracts it awards.

Package A of the two Dalma EPC contracts was awarded to NPCC and is valued at $514 million (AED1.89 billion). It covers the EPC of four offshore wellhead towers, pipelines and umbilicals in Hair Dalma, Satah, and Bu Haseer fields.
Package B, awarded to the Técnicas Reunidas and Target Engineering JV, is valued at $950 million (AED3.49 billion) and covers the EPC of gas conditioning facilities for gas dehydration, compression and associated utilities on Arzanah Island located 80 kilometers from Abu Dhabi.

Yaser Saeed Almazrouei, ADNOC Upstream Executive Director, said: “The award of the Dalma EPC contracts as well as ongoing artificial island construction and development drilling underscore the progress of the Ghasha mega development. As we continue to execute this strategic project, we  are ensuring it delivers substantial In-Country Value to drive economic growth and support the objectives of the UAE’s Principles of the 50, set out by the country’s wise Leadership.

“ADNOC and its partners remain guided by our strategic production capacity objectives and sustainability ambitions. Together, we are responsibly progressing the Ghasha mega development to maximise value as well as support the gas self sufficiency goal of the UAE.”

Both engineering contracts are expected to be completed in 2025 and will enable the Dalma field to produce around 340 million standard cubic feet per day (mmscfd) of natural gas. The offshore Dalma field is located 190 kilometers northwest of the Emirate of Abu Dhabi. ADNOC has advanced orders for long lead items and completed seven development wells at Dalma, enabling smooth and expedited project delivery.

ADNOC continues to work with its concession partners to responsibly progress the Ghasha mega project, aiming to further optimize costs and timing, as well as accelerate the integration of carbon capture, while remaining focused on production objectives and requirements. As part of this, ADNOC and its partners have today awarded a contract to Technip Energies to update the Front-End Engineering and Design (FEED) for the concession.

In the Ghasha concession area, three artificial islands have already been completed, as enabling works continue. Production from the concession is expected to start around 2025, ramping up to produce more than 1.5 billion scfd before the end of the decade. 

The Ghasha mega development includes one of the UAE’s largest ever marine environmental baseline surveys, underpinning ADNOC’s commitment to sustainability. Its use of artificial islands provides significant environmental benefits as well as cost savings by eliminating the need to dredge over 100 locations for wells while also providing additional habitats for marine life.

Source: ADNOC

ADNOC L&S Partners with AD Ports Group to Develop a New Port at Ruwais

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ADNOC Logistics & Services (ADNOC L&S), and AD Ports Group have signed an agreement to develop a new port and logistics facility at TA’ZIZ, the chemicals production and industrial hub currently under development at Ruwais, United Arab Emirates (UAE). 

Under the terms of the agreement, ADNOC L&S and AD Ports Group will develop a liquids terminal and logistics facility to support tenants of the TA’ZIZ Industrial Chemicals Zone. The facility will be a critical part of the supply chain for feedstocks and will store and load final products for export. The partners will select an international operator to enter into a new joint venture and contribute to the development of the new port. 

Speaking at the Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC), Captain Abdulkareem Al Masabi, CEO of ADNOC L&S, said: “Our strategic partnership with AD Ports Group builds on the complementary strengths of two UAE industrial champions in accelerating the competitiveness of TA’ZIZ and our growing petrochemicals sector in Ruwais. The new port will consolidate the UAE’s competitiveness as an international supply chain hub for energy and industry and further positions TA’ZIZ as the preferred partner for investing in the growth of the UAE’s advanced manufacturing base.”
TA’ZIZ is strategically aligned with the UAE’s ‘Principles of the 50’, with initial chemicals production expected in 2025. 

Captain Mohamed Juma Al Shamsi, Group CEO, AD Ports Group, said: “As an enabler of trade and industry, we remain committed to creating highly attractive business opportunities for companies within Abu Dhabi and the wider UAE. Our collaboration with ADNOC L&S to develop a port and liquid terminal facility to support TA’ZIZ is aligned with our vision of driving the growth of international trade in the Emirate. By bringing together our respective expertise to build vital trade infrastructure, we are boosting industrial investment flows to the UAE and helping accelerate Abu Dhabi’s economic growth and industrialization.”

Three large-scale berths and associated infrastructure in addition to loading and unloading facilities will make up the foundation of the new port. The two liquid berths measure 640 meters in length with the dry bulk berth measuring 320 meters, which combined equals 10 football pitches. A tank farm with ten product tanks and one feedstock storage tank will be included, with specialized utilities, control rooms, and product vapor handling systems safeguarding the products in storage.

TA’ZIZ comprises three zones; an Industrial Chemicals Zone that will host chemicals production with seven world-scale projects in the design phase, a Light Industrial Zone that will convert the outputs of the Chemicals Zone into consumable products, and an Industrial Services Zone that will house companies who provide services required by the other zones. 

Since launching in November 2020, contracts have been awarded for the initial Front-End Engineering and Design (Pre-FEED) for seven world-scale chemicals projects. Partnership announcements have been made for Blue Ammonia, Ethylene Dichloride (EDC), Chlor-alkali (CA) and Polyvinyl chloride (PVC). TAQA and ADNOC have also signed an agreement to develop a utilities facility for chemicals projects. 

ADNOC L&S is the largest integrated shipping and maritime logistics company in the Middle East, with a fleet of over 240 owned and chartered vessels and integrated solutions models covering the entire oil and gas supply in the UAE. The company operates the largest and only purpose-built oil and gas logistics base in the UAE, providing a wide range of diversified services to the offshore industry. ADNOC L&S’ recent 25-year exclusive agreement to service all Petroleum Ports in Abu Dhabi solidifies its role as the oil and gas supply chain champion in the UAE.

Source: ADNOC

ADNOC, bp and Masdar agree to expand UAE-UK new energy partnership

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Abu Dhabi National Oil Company (ADNOC), bp and Masdar announced the signing of strategic framework agreements to expand upon the UAE and UK’s longstanding track record of bilateral partnership in sustainability, including the potential development of clean hydrogen hubs in both the UK and UAE at a scale of at least 2 gigawatts (GW).


The agreements underscore the partners’ leadership in technology-driven solutions to the global climate challenge as well as a shared commitment to driving new economic opportunity through decarbonization, both domestically and abroad.

The signing of the framework agreements took place on the sidelines of His Highness Sheikh Mohammed bin Zayed Al Nahyan’s, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, official visit to the UK. The agreements were signed by His Excellency Dr. Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology, ADNOC Managing Director and Group CEO, and Masdar Chairman, and Bernard Looney, bp Chief Executive Officer.

Commenting on the agreements, H.E. Dr. Sultan Ahmed Al Jaber said: “The UK and UAE have enjoyed decades of strong economic ties and the agreements signed between ADNOC, Masdar and bp will serve to deepen the strategic relationship between our countries. We look forward to building upon this legacy to strengthen both countries’ ambitions to generate economic growth through low-carbon initiatives. These initiatives will make a direct contribution to the ‘Principles of the 50,’ the economic blueprint for sustainable growth recently announced by the UAE’s leadership.”  
Bernard Looney, bp’s Chief Executive Officer, said: “The UK and UAE governments have bold plans for decarbonization. The UK is our home and we have worked in the UAE for nearly a century. By partnering with the visionary leaders of ADNOC and Masdar, we see massive business opportunity to generate the clean energy the world wants and needs – and at the same time revitalize local economies and create the jobs of the future.” 

Under the terms of the agreements, ADNOC, bp and Masdar will seek to collaborate on UK and UAE clean hydrogen hub development at an initial scale of 1GW in the UAE and 1GW in the UK, building on the UAE’s position as an anchor investor in some of the UK’s largest offshore wind projects. The hydrogen agreements also align with the UK’s recently announced commitment to achieve 5GW of low-carbon hydrogen by 2030 and the UAE’s Nationally Determined Contribution of reducing greenhouse gas emissions by 23.5% compared to business as usual for the year 2030. 

ADNOC and bp will also, as part of the agreements, jointly identify areas for potential partnership in greenfield carbon capture and underground storage and best-in-class methane detection platforms. Further, Masdar and bp will together explore opportunities to develop, build and operate sustainable energy and mobility solutions in urban population centers. 

The partners’ shared interest in developing new opportunities for clean hydrogen development capitalizes on the UK and UAE’s highly complementary infrastructure and resource positions. With abundant renewable energy sources and proximity to significant future demand centers for hydrogen and its carrier fuels, the partners’ commitments can help to ensure the UK and UAE are well positioned to become regional leaders in the new hydrogen economy and support both countries’ ambitious climate targets. 

CCUS, an equally critical component of the world’s decarbonization toolkit, has been built successfully at commercial scale in the UK and UAE through the Teesside and Al Reyadah facilities, respectively. With the framework agreement, the two partners look forward to expanding their shared leadership in CCUS technology to explore pilot opportunities for further industrial-scale carbon capture within the UAE.

While the UAE has long maintained a zero-routine flaring policy, the partners’ potential collaboration on new methane detection technologies will help to further maximize the impact of both countries’ decarbonization strategies. Methane, at more than eighty times the potency of CO2, remains at the top of GHG mitigation agendas, necessitating the partners’ shared pursuit of cutting-edge monitoring and analysis platforms. 

Similarly, ADNOC and bp’s joint smart decision center initiative will support possible development and deployment of remote digital capabilities to transform both companies’ performance management and operational support, including in the area of energy efficiency.

Masdar and bp will also explore potential opportunities to together develop, build and operate energy and mobility services in urban spaces internationally, including energy efficiency, distributed renewables generation and energy storage, among others.

The initiatives envisaged by the strategic framework agreements would be subject to relevant regulatory approvals. 

Source: ADNOC

Abu Dhabi Offshore Exploration Block Awarded to a Consortium led by Pakistan Petroleum Limited in Historic Concession Agreement

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The Abu Dhabi National Oil Company (ADNOC) announced, the signing of a historic exploration concession agreement, awarding the exploration rights for Abu Dhabi’s Offshore Block 5 to a consortium of four Pakistani companies – Pakistan Petroleum Limited (PPL), Mari Petroleum Company Limited (MPCL), Oil and Gas Development Company Limited (OGDCL), and Government Holdings (Private) Limited (GHPL) – in Abu Dhabi’s second competitive block bid round. The consortium is led by PPL. 

The award marks the first time Pakistani companies invest in and explore for oil and gas in an Abu Dhabi concession as well as the first time ADNOC partners with Pakistani energy companies.

The historic agreement builds on the deep-rooted bilateral relationship between the United Arab Emirates (UAE) and the Islamic Republic of Pakistan and underscores ADNOC’s expanded approach to strategic partnerships, including those who can provide access to key growth markets for the company’s crude oil and products.

The exploration concession agreement was signed by His Excellency Dr. Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and Managing Director and Group CEO of ADNOC, and Moin Raza Khan, Managing Director and CEO of PPL.

H.E. Dr. Al Jaber said: “This historic exploration concession award marks a new chapter of energy cooperation in the 50-year old UAE-Pakistan relationship. It represents an important platform upon which we can drive win-win opportunities to support Pakistan’s energy security and further strengthen the strategic and economic ties between our two countries. We are delighted to partner with Pakistan Petroleum Limited and the other members of the consortium on Offshore Block 5. 

“The consortium was selected as part of Abu Dhabi’s block bid round where we have once again reinforced our approach to strategic partnerships that contribute the right combination of market access, capital, best-in-class expertise or advanced technology. We are very optimistic about the potential to unlock significant value with all our partners in this second competitive block bid round as we continue to accelerate the exploration and development of Abu Dhabi’s untapped resources, in line with the Leadership’s wise directives.”

Under the terms of the agreement, the consortium will hold a 100% stake in the exploration phase, investing up to $304.7 million (AED1.12 billion) towards exploration and appraisal drilling, including a participation fee, to explore for and appraise oil and gas opportunities in the block that covers an offshore area of 6,223 square kilometers and is located 100 kilometers north east of Abu Dhabi city. 

Khan said: “The PPL-led consortium is delighted to be selected for the concession award of Abu Dhabi’s Offshore Block-5. This award is not only a watershed moment for Pakistan and the Emirate of Abu Dhabi towards bilateral energy cooperation and economic links but also offers an opportunity to strengthen strategic cooperation with ADNOC to share technical know-how and expertise. 

 “We are particularly excited that this consortium comprises the ‘big four’ national exploration and production companies that are fully geared to support ADNOC and the Emirate of Abu Dhabi in reinforcing its leading position in the global energy sector.” 

Following a successful commercial discovery during the exploration phase, the consortium will have the right to a production concession to develop and produce such commercial discoveries. ADNOC has the option to hold a 60% stake in the production phase of the concession. The term of the production phase is 35 years from the commencement of the exploration phase and the block offers the potential to create significant in-country value for the UAE over the lifetime of the concession.

In addition to drilling exploration and appraisal wells, the exploration phase will see the consortium leverage and contribute financially and technically to ADNOC’s mega seismic survey, which is acquiring 3D seismic data within the block area. The data already acquired over a large part of the block combined with its proximity to existing oil and gas fields, suggests the concession area has promising potential.

ADNOC launched Abu Dhabi’s second competitive block bid round in 2019, offering a set of major onshore and offshore blocks, on behalf of the Government of Abu Dhabi. The award of Offshore Block 5 to the Pakistani consortium concludes this second block bid round, which has seen very competitive proposals submitted for the geographical areas offered. 

Following ADNOC’s recent discoveries of 22 billion stock tank barrels (STB) of recoverable unconventional oil resources and 160 trillion standard cubic feet (SCF) of recoverable unconventional gas resources, it was decided not to award an exploration license for Onshore Block 2. ADNOC intends to engage with potential partners for unconventional resource licensing opportunities around this geographical area. This area contains some of the unconventional resources discovered that have production potential ranking alongside the most prolific North American shale oil plays. 

As part of Abu Dhabi’s second block bid round, ADNOC awarded Offshore Block 4 to a wholly-owned subsidiary of Cosmo Energy Holdings Co., Ltd.; Offshore Block 3 to a consortium led by wholly-owned subsidiaries of Eni and PTT Exploration and Production Public Company Limited (PTTEP); and Onshore Block 5 to Occidental. Based on existing data from detailed petroleum system studies, seismic surveys, exploration, and appraisal wells data, estimates suggest the blocks in this second bid round hold multiple billion barrels of oil and multiple trillion cubic feet of natural gas.

PPL operates 15 producing fields across Pakistan and contributes over 20% of the country’s total natural gas supplies. As of June 2020, PPL’s proven recoverable reserves were 1,793.5 billion cubic feet (bcf) of natural gas, 13.3 million barrels (mmbbl) of oil/ NGL/ condensate and 543.1 thousand tonnes (Ktons) of LPG.

Source: ADNOC

ADNOC Invests Over $750 Million in Drilling-related Services to Support Production Capacity Growth

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Over 80% of the award value will flow back into the UAE’s economy under ADNOC’s In-Country Value program 

Awards unify the scope of several smaller contracts, enabling cost efficiencies and single point responsibility 

ADNOC Drilling’s scope reflects its expanded service profile following transformation into a fully Integrated Drilling Services (IDS) company  

The Abu Dhabi National Oil Company (ADNOC) announced, an investment of $763.7 million (AED2.8 billion) in integrated rigless services across six of its artificial islands in the Upper Zakum and Satah Al Razboot (SARB) fields to support its production capacity expansion to 5 million barrels per day (mmbpd) by 2030. 

The investment is in the form of three contracts awarded by ADNOC Offshore to Schlumberger, ADNOC Drilling, and Halliburton after a competitive tender process. Schlumberger’s share of the award is valued at $381.18 million (AED1.4 billion); ADNOC Drilling’s share is valued at $228.71 million (AED839.58 million), and Halliburton’s share is valued at $153.87 million (AED564.85 million).  

Over 80% of the total award value will flow back into the United Arab Emirate’s (UAE) economy under ADNOC’s In-Country Value (ICV) program over the 5-year duration of the contracts, reinforcing ADNOC’s commitment to ensuring more economic value remains in the country from the contracts it awards.

Yaser Saeed Almazrouei, ADNOC Upstream Executive Director, said: “These important awards for integrated rigless services will drive efficiencies of drilling and related services, and optimize costs in our Offshore operations as we ramp up our drilling activities to increase our production capacity and enable gas self-sufficiency for the UAE. The contractors bring best-in-class expertise and technologies with a proven track record in the industry and ADNOC Drilling’s scope reflects its expanded service profile following its successful transformation into a fully integrated drilling services (IDS) company, enabling it to offer its clients start-to-finish well drilling and construction services. Importantly, the high In-Country Value generated from the awards will stimulate new business opportunities for the private sector and support the UAE’s post-Covid economic growth.” 

The scope of the contracts includes coiled tubing services with thru-tubing downhole tools, stimulation services, including equipment and chemicals/fluid systems, surface well testing services, wireline, and production logging services and tools, saturation monitoring, and well integrity. 

Previously, ADNOC Offshore’s rigless services were provided through several discrete service-specific contracts. Unifying the scope through integrated service contracts, underpins ADNOC’s smart approach to procurement and provides ADNOC Offshore with operational flexibility while enabling cost efficiencies and single point responsibility by the contractors.   

Ahmad Saqer Al-Suwaidi, CEO of ADNOC Offshore, said: “These contracts are an important contributor to ADNOC Offshore’s plans to build our production capacity to over 2 million barrels a day in the coming years to support the ADNOC Group’s smart growth strategy.  The award follows a highly competitive bid process, which included a rigorous assessment of how much of the contract value would support the growth and diversification of the UAE’s economy through ADNOC’s In-Country Value Program.” 

The six artificial islands covered by the awards are Asseifiya, Ettouk, Al Ghallan, and Umm Al Anbar in the Upper Zakum field and Al Qatia and Bu Sikeen in the SARB field. Artificial islands provide significant cost and environmental benefits, particularly in shallow water, by enabling the use of lower-cost land-drilling rigs instead of higher-cost offshore jack-up drilling rigs. ADNOC has a proven record of developing artificial islands and drilling the Middle-East’s longest wells, as part of its continued commitment to protecting the UAE’s marine environment while enabling greater operational efficiencies and safety.

ADNOC Drilling’s transformation into a fully integrated drilling services provider followed the award to Baker Hughes of a 5% share in the company, which is now capable of delivering start-to-finish drilling and well-construction services onshore and offshore with proven efficiency gains. As of May 2021, ADNOC Drilling has delivered over 180 IDS wells since 2018, achieving an efficiency improvement of close to 50%, which resulted in over $210 million (AED767 million) savings.

As an integral part of its 2030 strategy, ADNOC is optimizing its procurement strategy to reflect market dynamics, focusing on long-term contracts with a reduced number of suppliers that provide stable and reliable delivery at highly competitive rates. This smart approach is enabling ADNOC to create more value, drive efficiencies, and ensure that strategic materials and components are available on time while achieving substantial efficiency gains as it increases overall procurement spend. 

Source: adnoc.ae

ADNOC and Three Japanese Companies to Explore Hydrogen and Blue Ammonia Opportunities

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The Abu Dhabi National Oil Company (ADNOC) announced, a joint study agreement (JSA) with two Japanese companies – INPEX Corporation (INPEX), JERA Co., Inc. (JERA), and a government agency, the Japan Oil, Gas and Metals National Corporation (JOGMEC) – to explore the commercial potential of blue ammonia production in the United Arab Emirates (UAE). 

The agreement builds on ADNOC’s low-carbon fuels leadership and extensive experience in carbon capture and storage and follows a virtual meeting between His Excellency Dr. Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and Managing Director and Group CEO of ADNOC, and H.E. Kajiyama Hiroshi, Japan Minister of Economy, Trade, and Industry (METI).

During the meeting, the ministers reviewed joint efforts between both countries to enhance industrial cooperation and drive new opportunities for partnerships in Hydrogen, renewables, and climate change following a series of framework agreements ADNOC signed with Japan’s METI as well as other Japanese companies earlier this year. 

H.E. Dr. Al Jaber said: “For almost five decades, the  UAE and Japan have enjoyed a deep-rooted and successful strategic relationship, underpinned by long-standing energy partnerships. As we increase our focus on the potential of new lower carbon fuels and navigate the energy transition, the UAE and ADNOC are keen to build and strengthen our existing partnerships and seize growth opportunities with Japan that can help produce more energy with fewer emissions. 

“This joint study agreement with INPEX, JERA and JOGMEC provides a roadmap for us to deepen access to Japanese markets for ADNOC’s products and further strengthen the UAE’s hydrogen value proposition.”

The UAE is aiming to expand bilateral economic and trade relations with Japan as it drives post-Covid economic growth and ADNOC is leveraging its status as a long-standing reliable and stable supplier of oil and gas to Japan to nurture new partnership opportunities between both countries. Japan is ADNOC’s largest international importer of oil and gas products with approximately 25% of its crude oil imported from the UAE.

H.E. Mr. Kajiyama said: In January, METI and ADNOC signed a Momorandum of Cooperation (MOC) on Fuel Ammonia and Carbon Recycling. Since then, further progress has been made among relevant entities, and we are pleased with the signing of JSA on fuel ammonia by ADNOC, INPEX, JERA and JOGMEC today. Japan hope that today’s conclusion of JSA will lead to further progress in concrete efforts to the supply of fuel ammonia from Abu Dhabi to Japan.

The JSA will provide a platform for ADNOC and its partners to explore supplying Japanese utility companies with blue ammonia produced in Abu Dhabi. 

ADNOC is already embarking on a world-scale blue ammonia production facility at the TA’ZIZ Industrial Chemicals Zone in Ruwais which will have a capacity of 1,000 kilotons per annum, and further opportunities in blue ammonia will be explored under the new agreement.

Blue ammonia is made from nitrogen and “blue” hydrogen derived from natural gas feedstocks, with the carbon dioxide by-product from hydrogen production captured and stored. Ammonia can be used as a low-carbon fuel across a wide range of industrial applications, including transportation, power generation, and industries including steel, cement and fertilizer production.

In January, the UAE and Japan agreed to cooperate on fuel ammonia and carbon recycling technologies following the signing of a Memorandum of Cooperation between ADNOC and Japan’s METI. Both the UAE and Japan enjoy strong bilateral economic relations dating back to 1961 when the first shipment of UAE crude oil was exported from the Umm al-Shaif offshore field in Abu Dhabi to Japan.

ADNOC has a long history of mutually beneficial strategic partnerships with Japanese oil and gas companies that span over four decades and cover the entire oil and gas value chain, and these partnerships have strengthened in recent years.

Source: ADNOC

ADNOC and Reliance Sign Strategic Partnership for World-Scale Chemical Projects at TA’ZIZ in Ruwais

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Plants to produce chlor-alkali, ethylene dichloride and polyvinyl chloride

Project advances development of TA’ZIZ ecosystem and Ruwais Industrial Complex

Products for export and local use to enable growth of UAE industry and substitute chemicals currently imported

First investment by Reliance in the region strengthens ties between UAE and India

Agreement signals continued momentum at TA’ZIZ with strong local and international investor interest

Abu Dhabi National Oil Company (ADNOC) today announced that Reliance Industries Limited (Reliance), has signed an agreement to join a new world-scale chlor-alkali, ethylene dichloride and polyvinyl chloride (PVC) production facility at TA’ZIZ in Ruwais, Abu Dhabi. The agreement capitalizes on growing demand for these critical industrial raw materials and leverages the strengths of ADNOC and Reliance as global industrial and energy leaders. The project will be constructed in the TA’ZIZ Industrial Chemicals Zone, which is a joint venture between ADNOC and ADQ, and represents the first investment by Reliance in the region.

The agreement continues the momentum of ADNOC’s downstream and industry growth plans in line with ADNOC’s 2030 strategy. Petrochemical, refining and gas growth projects are currently under construction, with a number of projects also recently completed across the downstream and industry portfolio. ADNOC is gearing up for growth with TA’ZIZ, the world-scale chemicals production hub and industrial ecosystem based in Ruwais, with investment in excess of AED 18 billion and a number of further growth projects in the downstream and industry sector. Since 2018, ADNOC has attracted significant foreign direct investment from international partners in the downstream business including refining, fertilizers and gas pipelines.

Under the terms of the agreement, TA’ZIZ and Reliance will construct an integrated plant, with capacity to produce 940 thousand tons of chlor-alkali, 1.1 million tons of ethylene dichloride and 360 thousand tons of PVC annually.

His Excellency Dr. Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and ADNOC Managing Director and Group CEO, said: “We are delighted to attract an investor of Reliance’s caliber to partner with ADNOC and ADQ in accelerating growth at TA’ZIZ. This agreement is a significant milestone, as we continue to grow a globally competitive industrial ecosystem and highly attractive investor value proposition. In line with our 2030 strategy, we look forward to creating further opportunities across the entire TA’ZIZ ecosystem for the next generation of local industry. The domestic production of critical industrial raw materials strengthens our supply chains, drives In-Country Value and accelerates the UAE’s economic diversification.”

Welcoming this initiative, Reliance Industries Chairman and Managing Director, Mr. Mukesh D. Ambani, said: “We at Reliance are excited to enter into a strategic partnership with ADNOC for establishing a world-class and world-scale chemicals project at TA’ZIZ in Ruwais. This important milestone further bolsters our long-standing relationship with ADNOC, reaffirming our faith in the global vision of the UAE’s wise leadership. It is also yet another testimony to the enormous potential in advancing India-UAE cooperation in value enhancement in the energy and petrochemicals sectors. The project will manufacture ethylene dichloride, a key building block for production of PVC in India. This is a significant step in globalizing Reliance’s operations, and we are proud to partner with ADNOC in this important project for the region.”

Chlor-alkali is used in water treatment and in the manufacture of textiles and metals. Ethylene dichloride is typically used to produce PVC. PVC has a wide range of applications across housing, infrastructure and consumer goods. The market for these chemicals is expected to enjoy steady growth supported by the needs of growing demand, particularly in Asia and Africa.

Production of these chemicals will create opportunities for local industry to source critical raw materials in the UAE for the first time, creating additional opportunities for In-County Value. For example, chlor-alkali will enable production of caustic soda, essential for the production of aluminum. Ethylene dichloride and PVC have a wide range of applications across housing, infrastructure and consumer goods.

Since its launch in November 2020, TA’ZIZ has made significant progress. Development activities at the site have moved forward, with land and marine surveys already completed. Considerable interest has been received from local and international investors in opportunities across the entire ecosystem and value chain, and agreements with the first phase of investors are nearing finalization.

Contracts have been awarded for the first stages of development of the TA’ZIZ site, and work is already underway. This includes geotechnical and topographical surveys, a marine bathymetric survey and health, safety, and environment impact assessments, which have already been completed. The surveys will enable civil engineering works to commence, preparing the TA’ZIZ site for construction as well as dredging for an entirely new port facility.

Tenders for the initial design of the seven TA’ZIZ chemicals derivatives projects have been awarded and work is ongoing. Final investment decisions for the projects and awards of related EPC contracts are being targeted for 2022.

Source: www.adnoc.ae

Fertiglobe Joins TA’ZIZ as Partner in World-Scale Blue Ammonia Project in Ruwais

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TA’ZIZ and Fertiglobe today announced that they have signed an agreement for Fertiglobe to join the world-scale blue ammonia production project at TA’ZIZ in Ruwais, Abu Dhabi. The agreement further strengthens the UAE’s hydrogen value proposition, building on the deep experience in carbon capture and storage of ADNOC, and the world leading ammonia capabilities of Fertiglobe, to develop the first-of-its-kind large scale blue ammonia project in the MENA region.  

The project benefits from its location in the purpose-built TA’ZIZ Industrial Chemicals Zone, adjacent to the Ruwais Industrial Complex, which will supply the project with attractive hydrogen and nitrogen feedstocks. The agreement is subject to regulatory approvals.

Since launching in 2020, TA’ZIZ has attracted significant interest from local and international investors. Today’s agreement marks the first international investor to partner with TA’ZIZ, with further announcements for other TA’ZIZ projects expected shortly.   

His Excellency Dr. Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and ADNOC Managing Director and Group CEO, said: “This is a significant milestone in the development of our blue hydrogen and ammonia business and capitalizes on the strong foundation that ADNOC has developed with Fertiglobe. We believe hydrogen and its carrier fuels, such as ammonia, offer strong potential as low-carbon energy sources. As we continue to grow our manufacturing base in Ruwais, the UAE is well-placed to meet increasing global demand for this new fuel while strengthening our position as a world-scale chemicals and industrial hub and top destination for local and international investment.”

Source: ADNOC

Saipem: new contract awarded by the Abu Dhabi National Oil Company (ADNOC) for the Shah Gas plant in the United Arab Emirate

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The project involves the development and upgrade of the existing gas plant. The contract is worth around 510 million USD overall

Saipem has received a Letter of Award from ADNOC Sour Gas, a subsidiary of the Abu Dhabi National Oil Company (ADNOC), for a new contract related to the Optimum Shah Gas Expansion (OSGE) & Gas Gathering project in the United Arab Emirates. The contract covers the expansion and upgrade of the existing Shah gas plant. The overall value of the contract is around 510 million USD.

The EPC (Engineering, Procurement, Construction) contract includes the engineering, supply of materials, construction and commissioning of additional components, designed to increase the gas treatment daily capacity of the Shah Gas plant by 13%, from the current production capacity of 1.28 to 1.45 billion standard cubic feet per day, representing a cumulative increase to 145% of the original design capacity of the plant.

The Shah Gas plant is the largest sour gas plant in the world. Due to a higher sulphur content, the plant requires specific technologies to ensure safety and respect for the environment. The technologies utilized will ensure, moreover, continuity of production even during maintenance work, and minimise downtime.

Saipem has a consolidated presence in the United Arab Emirates where it has already built many plants, including the design and build of the gas treatment units for the original construction of Shah.

Maurizio Coratella, Chief Operating Officer of Saipem’s Onshore E&C Division commented that: “The award of this new project by a key client such as ADNOC, strengthens our long-lasting presence in the United Arab Emirates and is an additional recognition of our ability to carry out high-tech and complex projects in accordance with the highest safety and environmental standards. We are pleased to contribute to the upgrading of this important plant for the country”.

Saipem is a leading company in the engineering, drilling and construction of major projects in the energy and infrastructure sectors. It is “One-Company” organised into five business divisions (Offshore E&C, Onshore E&C, Offshore Drilling, Onshore Drilling and XSIGHT, dedicated to conceptual design). Saipem is a global solution provider with distinctive skills and competences and high-tech assets, which it uses to identify solutions aimed at satisfying customer requirements. Listed on the Milan Stock Exchange, it is present in over 60 countries worldwide and has 32 thousand employees of 130 different nationalities
Source: www.saipem.com

ADNOC and TAQA to Develop World Class Utilities at TA’ZIZ in Ruwais

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TA’ZIZ a catalyst for industrial growth and diversification in Abu Dhabi, generating additional value from every barrel of oil produced and processed by ADNOC

Reliable and competitive utilities, such as power, steam and water, a critical enabler of the TA’ZIZ industrial ecosystem 

Agreement enhances investor value proposition for all of the TA’ZIZ industrial zones

Abu Dhabi National Oil Company (ADNOC) and Abu Dhabi National Energy Company PJSC (TAQA) have signed an agreement to construct the utilities facility for TA’ZIZ, the new world-scale chemicals  production hub and globally competitive industrial ecosystem currently under development at Ruwais, Abu Dhabi in the United Arab Emirates (UAE). This agreement brings together two of Abu Dhabi’s industrial champions, using the expertise and skills of both TAQA and ADNOC to enhance the attractiveness of TA’ZIZ projects and strengthen the value proposition for investors.

TA’ZIZ will accelerate the UAE’s broader economic growth and industrial diversification, with initial chemicals production expected in 2025. Opportunities are available for local and international investors to participate across the value chain, including light manufacturing and services.   Under the terms of the utilities facility agreement, ADNOC and TAQA will jointly develop the power, steam, cooling, demineralized and waste water services to enable chemicals projects within the TA’ZIZ ecosystem. 

Mr Khaleefa Al Mheiri Acting CEO, TA’ZIZ, said: “ADNOC’s agreement with TAQA is the next milestone in the development of TA’ZIZ, as we continue to grow a globally competitive  industrial ecosystem and highly attractive and competitive investor value proposition.  Through the partnership between ADNOC and TAQA and related enabling investments in TA’ZIZ, we are well-placed to further strengthen our position as a world-scale chemicals and industrial hub and top destination for foreign direct investment, leveraging technology to further grow the UAE’s advanced manufacturing base.”

Mr. Farid Al Awlaqi, Executive Director of Generation at TAQA Group, said: “We look forward to partnering with ADNOC on such an important project for Abu Dhabi that will be serving a multitude of industries, with both local and international market players. As a fully integrated utilities company, based here in Abu Dhabi, being able to provide such critical services for TA’ZIZ is at the core of what we do at TAQA.  In addition to supporting critical infrastructure development in our home market, this project advances the economic vision for the Emirate and the UAE.”

TA’ZIZ will catalyze the development of manufacturing and supply chain activities at Ruwais. Manufacturers will locate in the TA’ZIZ Light Industrial Zone, adjacent to the TA’ZIZ Industrial Chemicals Zone, off-taking TA’ZIZ chemicals to make value-added products for local and international markets. Suppliers will cluster in the TA’ZIZ Industrial Services Zone, to meet the growing needs for services in the Ruwais industrial area.

Since its launch in November 2020, TA’ZIZ has made significant progress. Development activities at the site have moved forward, with land and marine surveys already completed.  Considerable interest has been received from local and international investors in opportunities across the entire ecosystem and value chain, and agreements with the first phase of investors are nearing finalization.

Contracts have been awarded for the first stages of development for the TA’ZIZ site, and work is already underway. This includes geotechnical and topographical surveys, a marine bathymetric survey and health, safety and environment impact assessments, which have already been completed. The surveys will enable civil engineering works to prepare the TA’ZIZ site for construction as well as dredging for an entirely new port facility. 

Tenders for the Front-End Engineering and Design (Pre-EED/FEED) of the seven TA’ZIZ chemicals derivatives projects have been awarded. Final investment decisions for the projects and awards of related EPC contracts are being targeted for 2022.

TA’ZIZ enjoys strong synergies with ADNOC’s integrated downstream and industry assets for feedstocks and services, as well as advantaged maritime, land and air logistics and transport links. The TA’ZIZ site is adjacent to the Ruwais Industrial Complex and enjoys a favorable location at the crossroads of east-west trade flows and routes to the UAE’s target markets, with a third of the world’s population accessible within four hours by plane and short sailing distances. The city of Ruwais is today well-positioned to further grow and flourish with the influx of families that seek to build careers and lives in what has become a dynamic, highly attractive residential community.

Source: www.adnoc.ae

ADNOC Awards $744 Million Contract for Full Field Development of the Belbazem Offshore Block

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EPC contract awarded by Al Yasat Petroleum, ADNOC’s joint venture with CNPC, after a competitive tender process  CNPC EPC contract awarded by Al Yasat Petroleum, ADNOC’s joint venture with CNPC, after a competitive tender process 

65% of the award value will flow back into the UAE’s economy under ADNOC’s In-Country Value program 

Award will enable Belbazem to achieve crude oil production capacity of 45,000 bpd with first oil expected in 2023

$190 million (AED697.3 million) in CAPEX savings enabled through cost optimization achieved in FEED design

The Abu Dhabi National Oil Company (ADNOC) announced today, the award of a $744 million (AED2.73 billion) contract for the full field development of the Belbazem Offshore Block, underscoring its drive to unlock and maximize value from all of Abu Dhabi’s fields as it expands its oil production capacity to 5 million barrels per day (mmbpd) by 2030. Located 120 kilometers northwest of Abu Dhabi city, the Belbazem Block consists of three so-called marginal offshore fields; Belbazem, Umm Al Salsal, and Umm Al Dholou.

Al Yasat Petroleum Operations Company Ltd (Al Yasat), ADNOC’s subsidiary and joint venture (JV) with China National Petroleum Corporation (CNPC), awarded the engineering, procurement and construction (EPC) contract to the National Petroleum Construction Company (NPCC). ADNOC and CNPC hold 60% and 40% stakes in Al Yasat respectively, underpinning the strong bilateral ties and energy partnership between the United Arab Emirates (UAE) and China.

The EPC contract award follows a competitive tender process and will see 65% of the award value flow back into the UAE economy under ADNOC’s In-Country Value (ICV) program, highlighting how ADNOC continues to prioritize ICV as it delivers its 2030 strategy.

Yaser Saeed Almazrouei, ADNOC Upstream Executive Director, said: “We are very pleased to commence the full field development of the Belbazem Offshore Block, together with our strategic partner CNPC. This award demonstrates our commitment to maximize value from all of Abu Dhabi’s hydrocarbon resources for the benefit of the UAE and our partners. NPCC was selected after a rigorous tender process that ensures it will deploy best-in-class technology and expertise to execute this strategic project, with a substantial part of the award value flowing back into the UAE’s economy to stimulate local economic growth, in line with the wise directives of our Leadership.”

The scope of the award covers engineering, procurement, construction, and commissioning activities for the offshore facilities required to enable full production capacity of 45,000 bpd of light crude with API gravity of around 35 degrees and 27 million standard cubic feet per day (mmscfd) of associated gas from Belbazem. First oil is expected in 2023. 

As part of the process leading up to the EPC award, Al Yasat undertook a front-end engineering design (FEED) competition among the bidders to optimize the project. This initiative reduced the originally scheduled tender time by up to 12 months through removing the need for the technical bidding process for the EPC stage and has enabled savings of approximately $190 million (AED697.3 million) in capital expenditure (CAPEX). 

Shaheen Al Mansoori, Acting CEO of Al Yasat, said: “The FEED competition and EPC award for the Belbazem Offshore Block highlight Al Yasat’s focus on costs and competitive approach to ensure we can commercially develop our concession areas and deliver long-term and sustainable value for ADNOC and our partner CNPC. Al Yasat will continue to drive cost efficiencies as we unlock value from those of Abu Dhabi’s fields which are comparatively smaller and require a lean operating model to optimize their production and value potential.” 

The project scope includes three offshore Well Head Towers (WHTs), one in each of the Block’s three fields, interconnecting sub-sea pipelines, and cables to Zirku Island, located around 60 kilometers from Belbazem field. The scope also covers the development of greenfield facilities for water injection, produced water treatment, gas compression, and associated utilities as well as brownfield works for tie-in to existing facilities at Zirku Island. 

Al Yasat’s concession areas cover two blocks; one offshore and one mixed onshore/offshore. The offshore block includes oil fields at Bu Haseer, Belbazem, Umm Al Salsal, Umm Al Dholou, and Arzanah while the onshore/offshore block is located southwest of Abu Dhabi city. The company is focused on exploring and developing both concession areas using a lean operating model. Bu Haseer is the first of Al Yasat’s fields to come online following the start of production in  2018.

Source: www.adnoc.ae

ADNOC to Build World-Scale Blue Ammonia Project

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Project accelerates ADNOC and UAE leadership in emerging low-carbon fuel value chains

Signed agreements in place with customers to explore supply opportunities for blue hydrogen and hydrogen carrier fuels, such as blue ammonia

Builds on ADNOC’s advantaged position as a leader in carbon capture and underground storage at Middle East’s first commercial CCUS facility at Al Reyadah

Plant to be located at the TA’ZIZ industrial ecosystem and chemicals hub in Ruwais, close to international markets

Abu Dhabi National Oil Company (ADNOC) announced that it will advance a world-scale “blue” ammonia production facility in Ruwais, Abu Dhabi, in the United Arab Emirates (UAE). ADNOC is an early pioneer in the emerging hydrogen market, driving the UAE’s leadership in creating local and international hydrogen value chains, while contributing to economic growth and diversification in the UAE. The facility, which has moved to the design phase, will be developed at the new TA’ZIZ industrial ecosystem and chemicals hub in Ruwais.

Blue ammonia is made from nitrogen and “blue” hydrogen derived from natural gas feedstocks, with the carbon dioxide by-product from hydrogen production captured and stored. Ammonia can be used as a low-carbon fuel across a wide range of industrial applications, including transportation, power generation and industries including steel, cement and fertilizer production. The facility’s capacity will be 1,000 kilotons per annum.

In recent months, ADNOC has signed a number of agreements to explore hydrogen supply opportunities with customers in key demand centers including the Ministry of Economy, Trade and Industry of Japan and Korea’s GS Energy. This builds on the mandate given to ADNOC from the Supreme Petroleum Council in November 2020, to explore opportunities in hydrogen and hydrogen carrier fuels such as blue ammonia, with the ambition to position the UAE as a hydrogen leader. ADNOC is already a major producer of hydrogen and ammonia, with over 300,000 tons of hydrogen produced per annum at the Ruwais Industrial Complex.

His Excellency Dr. Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and ADNOC Managing Director and Group CEO, said: “This is a significant milestone in the development of our blue hydrogen and ammonia business, building on the UAE’s strong position as a producer of competitive, low carbon natural gas and our leadership role in carbon capture and underground storage. As we collectively navigate the global energy transition, we believe hydrogen, and its carrier fuels such as ammonia, offer promise and potential as zero carbon energy sources.

“The development also signals that the TA’ZIZ industrial ecosystem is moving ahead at speed in Ruwais. With TA’ZIZ as a key catalyst, we are well placed to further strengthen our position as a leading destination for local and international investment, leveraging technology to further grow the UAE’s advanced manufacturing and industrial base’’.

The  project will build on the UAE’s position as a major producer and reserves holder of natural gas and leadership in Carbon Capture Utilization and Storage (CCUS). CCUS is the use of advanced technology to prevent CO2 from entering the atmosphere after it is expended as a by-product of industrial processes. ADNOC today operates, Al Reyadah, the world’s first fully commercial CO2 facility for the iron and steel industry, and the first commercial-scale carbon capture, utilization, and storage facility in the Middle East.  Each year, Al Reyadah captures up to 800,000 tones of CO2 from local UAE steel production. 

Design contracts have been awarded for the initial Front-End Engineering and Design (Pre-FEED) work for the ammonia project and the six additional TA’ZIZ chemicals projects to Wood. In parallel ADNOC will undertake a feasibility study on the supply of blue hydrogen to the project from its operations in Ruwais. The final investment decision for the project is expected in 2022, and start-up is targeted for 2025.

Since its launch in November 2020, TA’ZIZ has made significant progress. Development activities at the site have moved forward, with land and marine surveys already completed.  Considerable interest has been received from local and international investors in opportunities across the entire ecosystem and value chain, and agreements with the first phase of investors are nearing finalization.

Source: www.adnoc.ae

ADNOC Invests $318 Million to Connect Smart Wells at Bu Hasa

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EPC contracts awarded by ADNOC Onshore will optimize performance by bringing online newly drilled smart wells enabling remote operations 

Over 50% of the award value to flow back into the UAE’s economy under ADNOC’s ICV program

Award follows a competitive tender process and will support sustainable production of Bu Hasa’s 650k barrels per day production capacity

The Abu Dhabi National Oil Company (ADNOC), announced today, an investment of up to $318 million (AED1.16 billion) to connect newly drilled smart wells to the main production facilities at Bu Hasa, which will sustain production capacity of 650,000 barrels per day (bpd) at ADNOC’s largest onshore asset.   

The Engineering, Procurement and Construction (EPC) contract has been awarded in two packages by ADNOC’s subsidiary, ADNOC Onshore. Package 1 is valued at up to $158.6 million (AED582 million) and has been awarded to China Petroleum Pipeline Engineering Co. Ltd, while Package 2, with a value of up to $159.1 million (AED 583.9 million) has been awarded to Robt Stone (ME) LLC. The duration of the contracts is three years, with the option of a two-year extension. 

The EPC award follows a competitive tender process and will see over 50% of the combined value of both awards flow back into the United Arab Emirates (UAE) economy under ADNOC’s In-Country Value (ICV) program, highlighting how ADNOC continues to prioritize ICV as it delivers on its 2030 strategy. 

Yaser Saeed Almazrouei, ADNOC Upstream Executive Director, said: “This EPC award demonstrates how ADNOC is leveraging advanced technologies, such as smart wells with state-of-the-art remote capabilities, to drive higher performance from our assets and resources, and to generate additional value. The award underpins our strategic objectives to expand production capacity and create a more profitable upstream business with over half of the contract value flowing back into the UAE’s economy, supporting local businesses and stimulating economic growth.” 

The EPC contract will see up to 260 conventional and non-conventional smart wells installed, which enable remote operations. The installed tie-ins will be different from traditional tie-ins previously used by ADNOC Onshore, as the contractors will procure all required equipment on an upfront basis allowing for faster construction and well hand-over. 

As part of the selection criteria for the award, ADNOC carefully considered the extent to which bidders would maximize ICV in the delivery of the project. This is a mechanism integrated into ADNOC’s tender evaluation process, aimed at nurturing new, local and international partnerships and business opportunities, fostering socio-economic growth, and creating job opportunities for UAE nationals. The successful bids prioritized UAE sources for materials, local suppliers, and workforce. 

In 2018, ADNOC awarded a contract for the Bu Hasa Integrated Field Development Project (BUIFDP) to increase the production capacity of the asset to 650,000 bpd and sustain long-term production as part of its strategy to expand its crude oil production capacity to 5 million bpd by 2030. This new award builds on the substantial progress made to date and will enable ADNOC Onshore to unlock greater value from the asset.

The Bu Hasa asset is located 200 kilometers south of Abu Dhabi city. It is one of ADNOC’s oldest oil fields that have been producing since 1965.

Source: adnoc.ae

Mubadala, ADNOC and ADQ form alliance to accelerate Abu Dhabi Hydrogen leadership

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Mubadala Investment Company (Mubadala), The Abu Dhabi National Oil Company (ADNOC), and ADQ announced the signing of a Memorandum of Understanding (MoU) to establish the Abu Dhabi Hydrogen Alliance (the Alliance). The Alliance partners will collaborate to establish Abu Dhabi as a trusted leader of low-carbon green and blue hydrogen in emerging international markets. They will also work together to build a substantial green hydrogen economy in the UAE.

Under the terms of the agreement, the Alliance will develop a roadmap to accelerate the UAE’s adoption and use of hydrogen in major sectors such as utilities, mobility and industry, through their respective operating companies and with international partners. Mubadala, ADNOC and ADQ will also align on their approach to international markets, for projects developed under the Alliance, with the aim of positioning Abu Dhabi as a reliable and secure supplier of hydrogen and its carriers to customers around the world as demand grows.

During a virtual ceremony, the MoU was signed by H.E. Khaldoon Khalifa Al Mubarak, Managing Director and Group Chief Executive Officer of Mubadala Investment Company, H.E. Dr. Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and ADNOC Group CEO, and H.E. Mohamed Hassan Alsuwaidi, Chief Executive Officer of ADQ.

Commenting on the importance of the Alliance, H.E. Khaldoon Khalifa Al Mubarak said: “As a responsible investor, we are actively engaged in a number of new energy investments that will contribute to more efficient and lower emission energy solutions. Hydrogen offers significant potential in this regard and with the renewables expertise and experience of Masdar, we are well placed to develop leadership in the green hydrogen value chain.

“Our engagement with ADNOC and ADQ is an important step in the establishment of the UAE’s hydrogen economy, and to align on technology, investment, the development of the domestic market and our approach to international partners and offtakers.”

H.E. Dr. Al Jaber said: “I am pleased that we are coming together as ADNOC, Mubadala and ADQ on this important initiative to explore and develop the potential of hydrogen as a new, low carbon fuel.

This alliance integrates our complementary strengths as energy and financial leaders to address the global challenge of meeting energy demand, while reducing emissions.

In addition, this Alliance will build on Abu Dhabi and the UAE’s global energy leadership and position as the center of gravity for energy innovation.

While we explore green hydrogen opportunities through the Alliance, ADNOC will place special emphasis on pursuing blue hydrogen projects by expanding on its existing hydrogen capacity, leveraging its significant gas reserves and best-in-class infrastructure, as well as its extensive customer relationships to help advance the hydrogen industry, both domestically and internationally.

Working together as an alliance, we will identify viable international market opportunities, while we develop a roadmap to create hydrogen production sites in Abu Dhabi, and the UAE.

H.E. Mohamed Hassan Alsuwaidi, CEO of ADQ, commented: “Forming the Abu Dhabi Hydrogen Alliance is an imperative that would deepen the hydrogen energy economy in the UAE allowing it to meet the rapidly growing global demand for hydrogen worldwide. With Abu Dhabi’s largest portfolio of energy and utilities investments, ADQ will play an important role in the transition to cleaner energy while shaping the future of this economic cluster leading to Abu Dhabi’s longer-term sustainability. Additionally, as ADQ continues to develop key clusters in the local economy, including mobility and logistics, we are well-placed to drive local adoption in sectors with high energy demand.”

“ADQ looks forward to working with ADNOC and Mubadala in defining the agenda for the Alliance. The scale of resources and experience each company brings to the new Alliance positions Abu Dhabi for accelerated growth in the hydrogen energy field, ultimately supporting the realization of the UAE’s decarbonization objectives.”

The companies are building on their complementary strengths to accelerate Abu Dhabi’s hydrogen leadership. ADNOC already produces around 300,000 tons per annum of hydrogen for its downstream operations, with plans to expand to more than 500,000 tons,and is well placed to build on its advantaged position as a major natural gas reserves holder and producer, with existing infrastructure and strong partnerships and customer relationships around the world. The signing today follows ADNOC’s agreement last week with the Ministry of Economy, Trade and Industry of Japan to explore cooperation on fuel ammonia and carbon recycling, harnessing technologies which will enable the hydrogen economy.

Mubadala will contribute through Masdar, its global renewable energy champion, and its extensive network of international technology and investment partners and other relationships. ADQ will bring together its portfolio companies across the energy value chain, with companies such as Abu Dhabi Ports, Abu Dhabi Airports, Etihad Rail, Etihad Steel, Abu Dhabi National Energy Company (TAQA) and Emirates Nuclear Energy Corporation (ENEC) to enable activities undertaken by the Alliance.

While the Alliance will pursue green hydrogen domestically, ADNOC will continue to develop blue hydrogen independently within the UAE, leveraging its existing capacity and capabilities.

The development of a local hydrogen economy is a natural proposition for the UAE. Its strong track record and industrial capacity across the energy value chain, coupled with its geographic location advantages, and growing local and export demand, mean that the country is uniquely positioned to establish a clean hydrogen economy.

Source: www.mubadala.com

ADNOC Awards Occidental Onshore Exploration Block in Abu Dhabi’s Second Competitive Block Bid Round

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The Abu Dhabi National Oil Company (ADNOC) announced, today, the signing of an exploration concession agreement, awarding the exploration rights for Abu Dhabi Onshore Block 5 to Occidental, a US-based international oil and gas exploration and production company.

The award has been approved by Abu Dhabi’s Supreme Petroleum Council (SPC) and follows the SPC’s endorsement last month for ADNOC to begin awarding exploration blocks in Abu Dhabi’s second competitive block bid round.

This award to Occidental represents a further deepening of the UAE-USA strategic bilateral relationship as well as the continued expansion of ADNOC’s strategic partnerships with those who can provide technology and capabilities, capital and access to key growth markets for the company’s crude oil and products.

Occidental will hold a 100 percent stake in the exploration phase, investing up to AED 514 million ($140 million), including a participation fee, to explore for and appraise oil and gas opportunities in the block that covers an onshore area of 4,212 square kilometers southeast of Abu Dhabi city. New 3D seismic data has been acquired over a large part of the block, which combined with its proximity to the existing onshore oil and gas fields, suggests the concession area has promising potential.

Following a successful commercial discovery during the exploration phase, Occidental will have the right to a production concession to develop and produce such commercial discoveries. ADNOC has the option to hold a 60 percent stake in the production phase of the concession. The term of the production phase is 35 years from the commencement of the exploration phase. Onshore Block 5 offers the potential to create significant in-country value for the UAE over the lifetime of the concession.

The exploration concession agreement was signed by His Excellency Dr. Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and ADNOC Group CEO, and Vicki Hollub, President and CEO of Occidental.

H.E. Dr. Al Jaber said: “We are very pleased to once again collaborate with Occidental and strengthen our long-standing partnership. This concession award highlights the important role of energy cooperation in deepening the strong and deep-rooted strategic relationship between the UAE and the US. Crucially, the award underscores the attractiveness of Abu Dhabi’s huge untapped resource potential and ADNOC’s ability to continue to secure foreign direct investment to the UAE’s stable and trusted business environment, despite tough market conditions.

“Occidental was selected after a very competitive bid round that builds on the success of our debut bid round completed last year as part of Abu Dhabi’s block licensing strategy aimed at accelerating the exploration and development of our substantial hydrocarbon resources. This onshore block offers new areas with significant amounts of conventional oil and gas potential, and the award signals ADNOC and Abu Dhabi’s drive to remain a long-term and reliable energy provider to the world.”

In addition to drilling exploration and appraisal wells, the exploration phase will see Occidental leverage and contribute financially and technically to ADNOC’s mega seismic survey, which is already acquiring seismic data within the block area. This world’s largest 3D seismic survey is deploying industry-leading technologies to capture high-resolution 3D images of the complex geology up to 25,000 feet below the surface and will be used to identify potential hydrocarbon reservoirs.

Vicki Hollub, President and CEO, Occidental, said: “We are honored to partner with ADNOC on a second exploration concession contiguous to Onshore Block 3, where we have completed two exploration wells with extremely promising results. We see significant potential in Onshore Block 5 and, in partnership with ADNOC, will continue to work to help unlock the vast untapped resources in Abu Dhabi.”

All exploration activities in Abu Dhabi are carefully planned to mitigate any potential impacts through the implementation of protection measures, the use of advanced techniques and technologies, and stakeholder engagement to minimize drilling activities in populated or environmentally sensitive areas.

ADNOC launched Abu Dhabi’s second competitive block bid round in 2019, offering a set of major onshore and offshore blocks, on behalf of Abu Dhabi’s SPC. Based on existing data from detailed petroleum system studies, seismic surveys, exploration and appraisal wells data, estimates suggest the blocks in this second bid round hold multiple billion barrels of oil and multiple trillion cubic feet of natural gas.

This award comes a few weeks after the SPC announced the discovery of recoverable unconventional oil resources estimated at 22 billion stock tank barrels (STB) and an increase in conventional oil reserves of 2 billion STB which boosted the UAE’s conventional reserves to 107 billion STB.

In February 2019, Occidental was awarded an onshore block in Abu Dhabi’s first competitive bid round. Occidental continues to explore for oil and gas in the block known as Onshore Block 3 that covers an area of 5,782 square kilometers in the Al Dhafra region of Abu Dhabi.

Source adnoc.ae

Daewoo Shipbuilding & Marine Engineering wins orders for 3 ultra-large crude oil carriers worth 282 billion won

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Daewoo Shipbuilding & Marine Engineering has won orders for 3 super-sized crude oil carriers, and is doing its best to secure work until the end.

On the 3rd, Daewoo Shipbuilding & Marine Engineering (CEO Lee Seong-geun) announced on the 3rd that it has won an order for 3 super-large crude oil carriers from Abu Dhabi National Oil Company (ADNOC), Abu Dhabi, United Arab Emirates.

The ultra-large crude oil carrier ordered this time is a ship that satisfies the EEDI Phase 2 (Energy Efficiency Design Index), a greenhouse gas emission regulation that has been applied by IMO, an international maritime organization, and built at the Okpo Shipyard of Daewoo Shipbuilding & Marine Engineering. It is expected to be delivered to shipowners by the first quarter of 2023.

An official from Daewoo Shipbuilding & Marine Engineering said, “Adnoc is the first to order a super-large crude oil carrier to a Korean shipyard, and it is a company that is expected to place additional orders for other types of ships in the future.” The contract is included, so we will do our best to build the highest quality ships and maintain a lasting friendly relationship.”

Instead of installing a scrubber, which is a desulfurization device, the ship uses low-sulfur oil, or it includes an option to change to a dual-fuel propulsion ship that can use liquefied natural gas (LNG) as ship fuel in the future. When it is decided as an LNG-propelled ship, it is expected that a high-pressure dual fuel propulsion engine (ME-GI engine) and a fuel tank using high manganese steel will be applied to the world’s first ultra-large crude oil carrier.

As demand for LNG-powered tankers is expected to increase in line with expectations for a global economic recovery and eco-friendly stance, Daewoo Shipbuilding & Marine Engineering, which has the best technology in the ultra-large crude oil carrier field, is expected to benefit. In addition, it is expected to accelerate the decarbonization of the company’s final goal. According to Clarkson Research (as of the end of November), Daewoo Shipbuilding & Marine Engineering has built 161 of the 834 ultra-large crude oil carriers currently in operation based on a single shipyard.

On the other hand, Daewoo Shipbuilding & Marine Engineering has won orders worth about $40.6 billion this year for a total of 21 ships including 9 LNG carriers (including LNG-FSU and FSRU), 4 container ships, 2 shuttle tankers, 5 VLCCs, and 1 VLGC. About 56.3% of the target was achieved. End.

Source: dsme.co.kr

ADNOC Awards $519 Million Contract Further Expanding World’s Largest 3D Seismic Surve

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The Abu Dhabi National Oil Company (ADNOC) announced the award of a contract worth up to $519 million (AED1.9 billion) to further expand the scope of the world’s largest combined three-dimensional (3D) onshore and offshore seismic survey, which is currently taking place in the Emirate of Abu Dhabi. 

The expansion underscores the important role seismic surveying plays in enabling ADNOC to identify and explore new hydrocarbon resources as highlighted by the recent major discoveries of recoverable unconventional oil resources and conventional oil reserves announced by Abu Dhabi’s Supreme Petroleum Council (SPC) earlier this week. 

In addition, this mega seismic survey also supported the discovery of the conventional oil and gas reserves and the unconventional gas resources added to ADNOC’s portfolio in 2019. 

The contract was awarded to BGP Inc., a subsidiary of China National Petroleum Company (CNPC), represented in the United Arab Emirates (UAE) by Al Masaood Oil Industry Supplies & Services Co. This new award brings the total area to be covered by the survey up to 85,000 km2 and reinforces ADNOC’s commitment to unlocking the full potential of Abu Dhabi’s vast hydrocarbon resources. 

50% of the award value will flow back into the UAE’s economy under ADNOC’s In-Country Value (ICV) program, highlighting how ADNOC continues to prioritize ICV as it invests responsibly to deliver its 2030 strategy. 

Yaser Saeed Al Mazrouei, ADNOC Upstream Executive Director, said: “This award builds on the solid progress we are making in executing the world’s largest combined 3D seismic survey which is an important part of our strategy to accelerate the exploration and development of Abu Dhabi’s hydrocarbon resources. It further demonstrates ADNOC’s commitment to realizing the full potential of our conventional and unconventional oil and gas resources to ensure the UAE remains a long-term and reliable energy provider to the world. The award follows a competitive tender process that ensures a significant portion of the value will flow back into the UAE’s economy, supporting local businesses in line with the leadership’s wise directives.”  

This contract increases the scope of the ongoing seismic mega survey to capture coastal areas, islands, and shallow water. It will utilize state-of-the-art technologies including cableless equipment and a wide range of environmentally friendly seismic sources

The seismic acquisition will capture high-resolution 3D images of the complex subsurface structure at ultra-deep locations and help to pinpoint potential hydrocarbon reservoirs by deploying industry-leading technologies to provide high-density survey data which is analyzed at ADNOC’s Thamama Subsurface Center. 

This data is being leveraged by all of the successful exploration partners in Abu Dhabi’s first block bid round and the data will also be available, for a cost, to the successful bidders in the second bid round, which will begin to be awarded this year following the SPC’s recent approval.

In July 2018, ADNOC awarded the first set of contracts for the seismic survey and has so far recorded almost 60% progress in executing the initial scope which includes onshore and offshore areas. The entire survey, including the added coastal scope, is on track to be completed in 2024.  

Earlier this week, the SPC announced the discovery of recoverable unconventional oil resources estimated at 22 billion stock tank barrels (STB) and an increase in conventional oil reserves of 2 billion STB which boosted the UAE’s conventional reserves to 107 billion STB. 

In November 2019, the SPC announced increases in hydrocarbon reserves of 7 billion STB of oil and 58 trillion standard cubic feet (TSCF) of conventional gas, as well as the discovery of unconventional recoverable gas resources totaling 160 TSCF.
As part of the selection criteria for contract awards, ADNOC carefully considers the extent to which bidders would maximize ICV in the delivery of a project. This is a mechanism integrated into ADNOC’s tender evaluation process, aimed at nurturing new local and international partnerships and business opportunities, fostering socio-economic growth, and creating job opportunities for Emiratis. 
This award prioritized UAE sources for materials, local suppliers, and workforce as well as advanced technologies. 

Source: adnoc.ae

Abu Dhabi announce discovery of new oil resources onshore

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The Supreme Petroleum Council (SPC)  announced the discovery of substantial recoverable unconventional oil resources located onshore, estimated at 22 billion stock tank barrels (STB), and an increase in conventional oil reserves of 2 billion STB in the Emirate of Abu Dhabi.

The announcements were made following the SPC meeting presided over by His Highness Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the United Arab Emirates (UAE) Armed Forces and Vice-Chairman of the SPC. 

At the meeting, the SPC approved ADNOC’s capital expenditure (CAPEX) plan of AED 448 billion ($122 billion) for 2021-2025 to enable smart growth. As part of this plan, ADNOC aims to drive over AED160 billion ($43.6 billion) back into the United Arab Emirates’ (UAE) economy between 2021-2025. The inflow to the local economy will be enabled by ADNOC’s In-Country Value (ICV) program which is aimed at nurturing new local and international partnerships and business opportunities for the private sector, fostering socio-economic growth and creating job opportunities for Emiratis.

In addition, the SPC gave approval for ADNOC to award exploration blocks in Abu Dhabi’s second competitive block bid round which was launched in 2019. 

The SPC also reviewed the transformation in ADNOC’s Marketing, Supply and Trading (MS&T) Directorate, which has evolved to offer customers a broader service, while further stretching the value from every barrel that ADNOC produces, refines and sells. The directorate has become a more integrated shipping and logistics, storage and trading focused entity, establishing two new trading companies – ADNOC Trading (AT) and ADNOC Global Trading (AGT) – to help deliver its mandate.

The SPC also reviewed  ADNOC and ADQ’s recently announced joint venture, TA’ZIZ, established to fund and develop chemicals projects within the Ruwais Derivatives Park. ADNOC and ADQ, through TA’ZIZ, are setting the stage for the UAE’s next generation of technology-driven growth and helping to advance the UAE post-Covid economic recovery.

Other SPC members that attended the meeting were H.H. Sheikh Hazza bin Zayed Al Nahyan; H.H. Sheikh Mansour bin Zayed Al Nahyan; H.H. Sheikh Hamed bin Zayed Al Nahyan; H.H. Sheikh Mohammed bin Khalifa bin Zayed Al Nahyan; H.E. Dr. Sultan Ahmed Al Jaber; H.E. Suhail Mohamed Al Mazrouei; H.E. Hamad Mubarak Al Shamsi; H.E. Dr. Ahmed Mubarak Al Mazrouei; H.E. Khaldoun Khalifa Al Mubarak; H.E. Eng. Awaidha Murshed Al Marar; H.E. Abdullah Nasser Al Suwaidi; and H.E. Suhail Faris Ghanem Al Mazrui.

During the meeting, H.H. Sheikh Mohamed bin Zayed reaffirmed the support of the UAE President and Chairman of the SPC, H.H. Sheikh Khalifa bin Zayed Al Nahyan, for ADNOC as the company continues to deliver sustainable value for the national economy through its 2030 strategy. 

H.H. Sheikh Mohamed bin Zayed commended the Abu Dhabi National Oil Company’s (ADNOC) agility and resilience, which has enabled the company to ensure zero interruptions to its operations while achieving its operational and financial targets, despite the tough market conditions.

H.H. Sheikh Mohamed bin Zayed also commended ADNOC’s robust and proactive response to COVID-19 which continues to prioritize the health and safety of its people and ensure business continuity and ADNOC’s sustained contribution to the United Arab Emirates (UAE) economy. 

Commenting on ADNOC’s discovery of onshore unconventional oil resources and an increase in its conventional oil reserves, H.H. Sheikh Mohamed bin Zayed said the achievement is a testament to ADNOC’s relentless efforts to unlock and maximize value from the UAE’s hydrocarbon reserves for the benefit of the nation. 

Following the meeting, H.H. Sheikh Mohamed bin Zayed engaged with front line staff and thanked them for their hard work and dedication while stressing people are the nation’s greatest asset. He met members of the ADNOC Future Leaders program virtually and emphasized the Leadership’s commitment to enabling the development of the nation’s youth and ensuring they are equipped with the necessary skills to build successful careers. 

His Excellency Dr. Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and ADNOC Group CEO, said: “We are thankful for the support and guidance of His Highness Sheikh Mohamed bin Zayed and the SPC in steering ADNOC through a very challenging year where we have had to navigate COVID-19 and volatile energy markets. As a result of this wise guidance and our transformation over the past four years, ADNOC has delivered robust operational and financial performance. Following the SPC’s approval of ADNOC’s CAPEX, we are  well-positioned to continue driving long-term and sustainable value for the UAE while creating opportunities for local businesses and private-sector jobs for Emiratis through our in-country value target.” 

Commenting on the SPC’s announcement of new hydrocarbon discoveries, H.E. Dr. Al Jaber said: “Today’s announcement by the SPC of the discovery of recoverable unconventional oil resources demonstrates how ADNOC is efficiently expediting the exploration and development of Abu Dhabi’s unconventional resources and marks a major milestone as the nation’s unconventional industry evolves. Importantly, the increase in the UAE’s conventional oil reserves sends a strong signal that ADNOC is leaving no stone unturned in unlocking value from our abundant hydrocarbon resources to ensure the UAE remains a long-term and reliable energy provider to the world for decades to come. 

“In parallel, we are developing large-scale capital projects in Ruwais to further stretch the margin from each barrel of oil we produce as we deliver on our downstream expansion strategy – at the heart of which are our plans to develop Ruwais into a dynamic, global hub for the UAE’s industrial growth and economic diversification –  and we are strengthening our marketing, supply, and trading capabilities to unlock greater value from our products.” 

ADNOC’s CAPEX plan will enable it to drive upstream growth, progress downstream expansion and further strengthen the company’s marketing and trading capabilities to ensure it maintains its competitiveness and industry leadership position over the next fifty years. 

To underpin this competitiveness, H.H. Sheikh Mohamed bin Zayed mandated ADNOC to explore potential opportunities in Hydrogen with the ambition to position the UAE as a Hydrogen leader.

ADNOC’s downstream expansion continues to prioritize the transformation of Ruwais into a globally competitive chemicals and industrial hub, leveraging close geographic proximity to fast-growing global demand centers, a competitive feedstock position, Abu Dhabi’s attractive fiscal and regulatory environment, and an integrated utilities, infrastructure and services offer to drive accelerated FDI inflows over the long term.

Despite the challenging market conditions, ADNOC delivered AED 62 billion ($16.8 billion) in foreign direct investment (FDI) to the UAE this year, taking the total FDI ADNOC has driven since 2016 to AED 237 billion ($64.5 billion). His Highness expressed the SPC’s appreciation of ADNOC’s smart and innovative approach to strategic partnerships and investments which has resulted in the company completing several landmark transactions. 

ADNOC maintains its leadership role in driving ICV for the UAE following the huge success of its ICV program which has driven more than AED 76 billion ($20.7 billion) back into the UAE’s economy and created over 2,000 private-sector jobs for Emiratis since it was launched in January 2018. ADNOC’s new ICV goal will enable the localization of strategically critical parts of the oil and gas value chain and create more private-sector jobs for Emiratis.

The new discovered resources will further strengthen the UAE’s role as a leading resource holder with high-quality crude grades, reinforce the country’s energy security and underpin its position as an essential and reliable energy provider to the world. This year, ADNOC successfully increased its crude oil production capacity to over 4 million barrels per day (mmbpd).

The mandate to explore potential opportunities in Hydrogen will see ADNOC capitalize on the emerging global market for Hydrogen by leveraging its existing infrastructure and partnership base as well as Abu Dhabi’s vast reserves of natural gas. 

ADNOC already produces hydrogen for its downstream operations and following this mandate, the company will explore the potential to help meet the emerging global demand for hydrogen and ammonia derived from natural gas. Building on its advantaged position as a major natural gas reserves holder and producer, with existing infrastructure and strong partnerships, ADNOC is well placed to lead the development of international value chains and establish a hydrogen ecosystem for the UAE in partnership with other Abu Dhabi entities.

The 22 billion STB of recoverable unconventional oil resources announced by the SPC exceeds some of Abu Dhabi’s major fields in terms of resources and the production potential ranks alongside the most prolific North American shale oil plays. The unconventional oil resource assessment was supported by extensive well data as well as a dedicated appraisal program by ADNOC in an area covering 25,000 square kilometers onshore in Abu Dhabi. 

The 2 billion STB of conventional oil reserves announced by the SPC increases the UAE’s conventional oil reserves base to 107 billion STB of recoverable oil, strengthening the country’s position in global rankings as the holder of the sixth-largest oil reserves. This increase in reserves is as a result of the ongoing maturation of ADNOC’s developments towards its 5 million barrels per day (mmbpd) oil production capacity target by 2030, and its appraisal activities, particularly in the Al Nouf field. 

Both the conventional and unconventional oil resources offer the potential to provide ADNOC with additional amounts of Murban-grade crude. Murban is ADNOC’s signature grade crude and is recognized around the world for its intrinsic chemical qualities, consistent and stable production volumes, large number of international buyers, and numerous long-term concession and production partners.

Ryder Scott Co. LP has confirmed through an independent assessment that ADNOC’s conventional oil reserves and the technically recoverable unconventional oil resources are consistent with their results. 

These additions to the UAE’s hydrocarbons base follows the announcement in November 2019 by the SPC of increases in hydrocarbon reserves of 7 billion STB of oil, 58 trillion standard cubic feet (TSCF) of conventional gas, and 160 TSCF of unconventional recoverable gas resources. These additions to the UAE’s hydrocarbon reserves marked a historic milestone for the country since the last major update of its reserves base three decades ago.

Following the SPC’s approval for ADNOC to award exploration blocks in the Abu Dhabi 2019 Block Bid Round, the company is set to announce the successful bidders. Based on existing data from detailed petroleum system studies, seismic surveys, exploration and appraisal wells data, estimates suggest the blocks in this second bid round hold multiple billion barrels of oil and multiple trillion cubic feet of natural gas.

As ADNOC develops its upstream resources and expands its downstream footprint, it is further strengthening its marketing and trading capabilities. As part of this effort, AGT – a joint venture with Eni and OMV – is set to begin the trading of refined products before the end of the year. 

In addition, ADNOC will expand its shipping capabilities by purchasing a fleet of Very Large Crude Carriers (VLCCs), through ADNOC Logistics & Services (ADNOC L&S), creating new long-term revenue streams as it enters a new sector to support growing customer demand and its historic move into trading.

AGT and AT are both incorporated at the International Financial Center, Abu Dhabi Global Market, joining ICE Futures Abu Dhabi (IFAD), which plans to launch trading in Murban futures contract at the end of March 2021. IFAD will be the world’s first trading platform to include futures contracts based on Abu Dhabi’s unique grade of Murban crude – increasingly the benchmark grade in Asia’s fast-growing economies.

Source: adnoc.ae

ADNOC Awards $324 Million Contracts to Optimize Onshore Field Operations and Enhance Efficiencies

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The Abu Dhabi National Oil Company (ADNOC) announced the award of contracts worth $324 million (AED 1.19 billion) to optimize onshore field operations and enhance efficiencies as it continues to invest responsibly to drive smart growth.

ADNOC Onshore, a subsidiary of ADNOC, awarded the three contracts which will see the procurement and construction (PC) of flowlines and wellhead installations across several onshore oil fields in the Emirate of Abu Dhabi. The contracts also include the engineering, procurement, and construction (EPC) of a new bypass system to provide critical backup for the existing crude receiving stations at the Jebel Dhanna and Fujairah export terminals. 

The contracts were awarded to Galfar Engineering and Contracting (WLL – Emirates) and Robt Stone (Middle East LLC). Over 70% of the combined award value will flow back into the United Arab Emirates’ (UAE) economy under ADNOC’s In-Country Value (ICV) program, reinforcing ADNOC’s commitment to maximizing value for the nation. 

Yaser Saeed Almazrouei, Executive Director of ADNOC’s Upstream Directorate, said: “These awards further highlight ADNOC’s drive to invest responsibly to unlock greater value from our assets and resources and build long-term resilience as we deliver our 2030 strategy. The contracts follow a competitive tender process that ensures that substantial value will flow back into the UAE through our ICV program, reinforcing ADNOC’s commitment to supporting local business and stimulating the growth and diversification of the nation’s economy.”

As part of the selection criteria for the awards, ADNOC carefully considered the extent to which bidders would maximize ICV in the delivery of the project. This is a mechanism integrated into ADNOC’s tender evaluation process, aimed at nurturing new local and international partnerships and business opportunities, fostering socio-economic growth, and creating job opportunities for UAE nationals. The successful bids by the two contractors prioritized UAE sources for materials, local suppliers, and workforce. 

Omar Obaid Al Nasri, CEO of ADNOC Onshore, said: “These contracts build on the momentum of our recent awards for upgrades on the Jebel Dhanna terminal and underline our commitment to unlocking the full potential of our assets and fields to deliver increased value for our shareholders and contribute to ADNOC’s objective to create a more profitable upstream business. The award for flowlines and wellhead installations will help sustain long-term production at our Bab, Asab, and Sahil fields while the award for the bypass system will provide critical backup for the existing crude receiving station connecting our fields and export terminals, to ensure business continuity and resilience.”

The two PC contracts awarded for flowlines and wellheads are split into two parts. The first contract, valued at approximately $71 million (AED 261.2 million), is awarded to Galfar Engineering & Contracting (WLL – Emirates). The contractor will procure and construct flowlines and wellhead installations for the ADNOC Onshore Asab and Sahil fields. 

The second contract, valued at approximately $168 million (AED 618.2 million), is awarded to Robt Stone (Middle East LLC). The contractor will procure and construct flowlines and wellhead installations for the ADNOC Onshore Bab field.

The scope of work includes residual engineering, procurement, construction, pre-commissioning, and commissioning of natural oil producer wells and water injection wells at the respective fields. Both contracts are expected to be completed in five years. 

The third contract, the EPC awarded to Galfar Engineering and Contracting (WLL – Emirates), is valued at approximately $84 million (AED 309.1 million). It will create a new bypass system to provide critical backup for ADNOC Onshore’s existing crude receiving stations at the Jebel Dhanna and Fujairah export terminals. The project is expected to be completed in 30 months. 

Source: adnoc.ae

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ADNOC Onshore announced the award of two EPC contracts with a combined value of $245 million to upgrade Main Oil Lines and Jebel Dhanna Terminal

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ADNOC Onshore, a subsidiary of the Abu Dhabi National Oil Company (ADNOC), announced today, the award of two Engineering, Procurement, and Construction (EPC) contracts to upgrade two Main Oil Lines (MOLs) and crude receiving facilities at the Jebel Dhanna Terminal in the Emirate of Abu Dhabi. 

The EPC contracts have a combined value of around $245 million (AED 899.9 million) and were awarded to China Petroleum Pipeline Engineering Company Limited – Abu Dhabi and Abu Dhabi-based Target Engineering Construction Co. L.L.C. 

Over 50 percent of the total award value will flow back into the UAE’s economy under ADNOC’s In-Country Value (ICV) program, underscoring ADNOC’s drive to prioritize ICV as it invests responsibly and pursues smart growth to maximize value from its assets and deliver sustainable returns to the United Arab Emirates (UAE). 

Yaser Saeed Almazrouei, Executive Director of ADNOC’s Upstream Directorate, said: “The EPC contracts awarded by ADNOC Onshore will increase the capacity of the two main oil lines and upgrade the Jebel Dhanna Terminal to enable it to receive Upper Zakum and Non-System crude for delivery to the Ruwais Refinery West project. The awards follow a very competitive tender process and highlight how ADNOC is making smart investments to optimize performance and unlock greater value from our assets. Crucially, a significant portion of the awards will flow back into the UAE’s economy under ADNOC’s ICV program, reinforcing our commitment to maximize value for the nation as we create a more profitable upstream business and deliver our 2030 strategy.” 

The EPC contract awarded to China Petroleum Pipeline Engineering Company Limited – Abu Dhabi is valued at approximately $135 million (AED 496.8 million) and the scope is to replace the two MOLs which transport ADNOC’s premium grade Murban crude oil from its oilfields at Bab (BAB), Bu Hasa (BUH), North East Bab (NEB), and South East (SE) to Jebel Dhanna terminal, increasing the capacity of the pipelines by over 30 percent. 

The contract is expected to be completed in 30 months and will see over 45 percent of the award value flow back into the UAE’s economy under ADNOC’s ICV program. 

The EPC contract awarded to Target Engineering Construction Co.L.L.C. is valued at approximately $110 million (AED 403.7 million) and will see the contractor upgrade the crude receiving facilities at the Jebel Dhanna Terminal, enabling ADNOC to utilize parts of the terminal’s existing facilities to import Upper Zakum (UZ) crude oil from offshore and Non-System (NS) crude, for delivery to the new Ruwais Refinery West (RRW) project, located approximately 12 kilometers to the east of Jebel Dhanna terminal. 

This ability to import other grades of crude at Jebel Dhanna following the completion of the project will provide ADNOC greater flexibility, highlighting how the company is extracting value from every barrel of crude it produces. The terminal was originally conceived and operated as a Murban crude oil export facility since its inception in the 1960s.

The contract is expected to be completed in 20 months and will see over 60 percent of the award value to Target Engineering flow back into the UAE’s economy under ADNOC’s ICV program. 

As part of the selection criteria for the awards, ADNOC carefully considered the extent to which bidders would maximize ICV in the delivery of the project. This is a mechanism integrated into ADNOC’s tender evaluation process, aimed at nurturing new local and international partnerships and business opportunities, fostering socio-economic growth, and creating job opportunities for UAE nationals. The successful bids by the two contractors prioritized UAE sources for materials, local suppliers and workforce. 

Source: ADNOC Press Release

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UAE finds new natural gas field between Abu Dhabi, Dubai

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The United Arab Emirates on Monday announced the discovery of a natural gas field containing 80 trillion standard cubic feet of gas between Abu Dhabi and Dubai.

Authorities said the new Jebel Ali field would help the Emirates become more energy independent, as the UAE now imports natural gas from Qatar for electricity.

Leaders of Abu Dhabi and Dubai witnessed the signing of an agreement between Abu Dhabi National Oil Company (ADNOC) and Dubai Supply Authority for the exploration and development of the gas resources.

Qatar has continued to supply its Gulf neighbour with gas via the Dolphin pipeline, despite being blockaded by the UAE and three other Arab nations over a years-long political dispute. 

In June 2017, Saudi Arabia, the UAE, Bahrain and Egypt imposed a land, air and sea blockade on Doha, accusing it of “supporting terrorism”.

Qatar has repeatedly and vehemently denied the allegation.

The agreement with Qatar “reinforces ADNOC’s commitment to ensuring a sustainable and economic gas supply and achieving gas self-sufficiency”, said the firm’s CEO, Sultan al-Jaber.

ADNOC and the Dubai Supply Authority will explore and develop the shallow gas field, which spans some 5,000 square kilometres (1,930 square miles), ADNOC said.

Monday’s statements gave no details on the timeframe for the new gas resources to come on stream or the estimated cost of the projects.

Shallow gas resources are reserves found trapped not too deep from the surface but they need advanced technology for production.

Qatar is the world’s largest liquefied natural gas (LNG) producer.

It produces and supplies the globe with 42 million metric tonnes of LNG annually. Most of this gas is pumped from the North Field, which is part of the world’s largest gas field that is shared between Qatar and Iran.

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Adnoc’s $15 Billion Gas Pipeline Draws BlackRock, GIP Interest

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Global Infrastructure Partners and KKR & Co. are among suitors considering bidding for a stake in natural gas pipelines being sold by Abu Dhabi’s state-owned energy giant, people familiar with the matter said.

Australia’s IFM Investors Pty and Ontario Teachers’ Pension Plan are also weighing offers for a stake in Abu Dhabi National Oil Co.’s gas pipeline unit, according to the people. A deal could value the business at as much as $15 billion including debt, the people said, asking not to be identified because the information is private.

The oil giant expects to receive first-round bids in mid-February, the people said. Adnoc is seeking to sell as much as 49% of the business through a lease structure, according to the people.

Abu Dhabi, the capital of the United Arab Emirates, is among Persian Gulf oil producers that are opening up their operations to outside investment to attract fresh capital and diversify their economies. Adnoc has raised billions of dollars by bringing in partners for businesses including its refining unit and drilling business.

No final decisions have been made, and there’s no certainty the companies will proceed with firm offers for a stake in the Adnoc gas pipelines, the people said. Representatives for Adnoc, BlackRock, KKR and Ontario Teachers declined to comment. Representatives for IFM and GIP didn’t immediately respond to requests for comment.

KKR and BlackRock agreed last year to invest $4 billion in Abu Dhabi’s oil pipelines, securing two decades of guaranteed returns. The deal was the first investment by foreign asset managers in the infrastructure of a Middle Eastern government-owned oil producer. Singapore sovereign wealth fund GIC Pte also invested in the business later.

Source:https://bloom.bg/312fwk9

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RIL Plans to Develop Chemical Facility in Ruwais with Adnoc

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Reliance Industries NSE and Abu Dhabi National Oil Company (ADNOC) have signed a framework agreement to explore the development of an Ethylene Dichloride (EDC) facility in Ruwais, the companies said in a joint statement late Tuesday.

The planned unit will help RIL in procuring EDC, a key raw material used in the manufacturing of a polymer product, Polyvinyl chloride (PVC). PVC products are used in the housing and agriculture sectors, and demand for it, particularly in the Indian vinyl market, is expected to grow.

This is a significant step towards Reliance’s commitment to pursue backward integration and will pave the way for enhancing PVC capacity in India to cater to the fast-growing domestic market. This cooperation ideally combines advantaged feedstock and energy from the UAE with Reliance’s execution capabilities and the growing Indian market,” RIL executive director Nikhil Meswani was quoted as saying in the statement.

RIL will provide the planned joint venture operational expertise and

expertise and entry to the large and growing Indian vinyl market, in which it is a key participant.

ADNOC would supply ethylene to the potential JV and provide access to infrastructure at Ruwais in Abu Dhabi. The pact is part of ADNOC’s strategy to expand the downstream portfolio and international market access by 2030.

As per the pact, ADNOC and RIL will evaluate the potential creation of a facility that manufactures EDC adjacent to ADNOC’s integrated refining and

petrochemical site in Ruwais, Abu Dhabi, and strengthen the companies’ existing relationship supporting future collaboration in petrochemicals.

Source: http://bit.ly/2EcXAZf