Adipec 2021: Adnoc awards contracts worth $1.46bn to expand output from Dalma field

The first ouput from the Ghasha concession is expected to begin in 2025 and will be ramped up to 1.5 billion cubic feet per day before the end of the decade. Christopher Pike/Bloomberg

Abu Dhabi National Oil Company awarded two engineering, procurement and construction contracts worth $1.46 billion to expand the output of the Dalma gas field, which is part of the world's largest offshore sour gas concession.

The UAE's National Petroleum Construction Company and a joint venture between Spain's Técnicas Reunidas and Target Engineering won the EPC contracts for the development of the Dalma field.

The first package awarded to NPCC is worth $514 million and covers the construction of four offshore wellhead towers, pipelines and infrastructure in Hair Dalma, Satah, and Bu Haseer fields.

The second package, worth $950m and awarded to the Técnicas Reunidas-Target Engineering JV, covers gas conditioning facilities on Arzanah island located 80 kilometres from Abu Dhabi.

"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," said Adnoc upstream executive director Yaser Almazrouei.

"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."

A cornerstone of the UAE's jubilee celebrations is the Projects of the 50 – a series of initiatives to boost economic growth and prepare for a rapidly changing future. In September, the UAE set out the Principles of the 50 to lay out the country's economic, political and developmental road map for the next five decades.

Around 70 per cent of the value of the project award will flow back into the UAE's economy, Adnoc said.

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Adipec 2021 - in pictures

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Following development work executed by the contractors, the Dalma field will have the capacity to produce around 340 million cubic feet per day of natural gas by 2025. The field is located around 190 kilometres northwest of the UAE capital.

“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," Mr Almazrouei, said.

Adnoc also awarded a contract to Technip Energies for design work on the Ghasha mega project.

Technip Energies will look to accelerate carbon capture on the site and optimise costs, Adnoc said.

The first ouput from the Ghasha concession is expected to begin in 2025 and will be ramped up to 1.5 billion cubic feet per day before the end of the decade. Adnoc has built three artificial islands to support production.

The Ghasha ultra-sour gas concession comprises the Hail, Ghasha, Dalma, Nasr, Sarb, Bu Haseer, Shuweihat and Mubarraz offshore sour gas fields in Abu Dhabi.

Adnoc maintains a majority stake in the concession, while Italy’s Eni, Germany’s Wintershall Dea, Austria’s OMV and Russia’s Lukoil hold the remaining shares.