ADNOC Awards $1.46 Billion EPC Contracts for the Dalma Gas Development Project
Abu Dhabi, UAE - November 18, 2021
Dalma is part of the Ghasha Concession which is an important enabler of gas self-sufficiency for the UAE
Two EPC contracts awarded to NPCC and a joint venture between Técnicas Reunidas and Target Engineering
70% of award value will flow back into the UAE's economy under ADNOC's successful In-Country Value program
ADNOC to further optimize costs and reduce emissions of the wider Ghasha Concession as it updates the FEED to accelerate integration of carbon capture
: The Abu Dhabi National Oil Company (ADNOC) announced today, 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.