ADNOC Awards $1.46B in EPC Deals for Dalma Offshore Gas Field

November 18, 2021

The Abu Dhabi National Oil Company (ADNOC) has awarded two engineering, procurement and construction (EPC) contracts totaling $1.46 billion (AED5.36 billion) for the Dalma Gas Development Project offshore Abu Dhabi.

The Dalma field is part of the Ghasha Concession which has been described as the world’s largest offshore sour gas development and, according to ADNOC, "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 umbilical. 

"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," ADNOC said.

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.File Image: ADNOC

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.

The Ghasha Concession comprises of the Hail, Ghasha, Hair Dalma, Satah, Bu Haseer, Nasr, SARB, Shuwaihat and Mubarraz fields.

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 maximize value as well as support the gas self-sufficiency goal of the UAE.”

ADNOC also said that it and its partners on Thursday 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," ADNOC said.

The Ghasha "mega development" includes one of the UAE’s largest-ever marine environmental baseline surveys. According to ADNOC, 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.

ADNOC’s strategic partners in the Ghasha Concession are Eni (25%), Wintershall Dea (10%), OMV (5%), and LUKOIL (5%).



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