Adnoc awards $1.46 billion EPC contracts for Dalma Gas Project

The Abu Dhabi National Oil Company (Adnoc) announced today the award of two engineering, procurement and construction (EPC) contracts totaling $1.46 billion (Dhs5.36 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.

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 per cent of the award value will flow back into the UAE’s economy under Adnoc’s successful In-Country Value (ICV) programme, 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 (Dhs1.89 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 (Dhs3.49 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.

Meanwhile the 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. 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 of 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 industrialisation.”

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 metres in length with the dry bulk berth measuring 320 metres, 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 vapour 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.

WAM