Adnoc awards $324 million contracts to optimise OFO, enhance efficiencies

Business Bureau, Gulf Today

The Abu Dhabi National Oil Company (Adnoc) has announced the award of contracts worth $324 million (Dhs1.19 billion) to optimise onshore field operations (OFO) 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 per cent of the combined award value will flow back into the UAE’s economy under Adnoc’s In-Country Value (ICV) programme, reinforcing Adnoc’s commitment to maximising 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 programme, 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 maximise 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 prioritised 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 (Dhs261.2 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 (Dhs618.2 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 (Dhs309.1 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.

It may be mentioned that Adnoc is one of the world’s leading diversified energy and petrochemicals groups, and is a primary catalyst for the UAE’s growth and diversification.  Adnoc Onshore contributes over half of Adnoc’s total oil production capacity. The company also operates over 1,000 kilometers of pipeline, seamlessly connecting Murban crude supply to its two world-class export terminals at Jebel Dhanna and Fujairah – which is also the world’s 2nd largest bunkering hub.