ADNOC announces $548 million contract for a new gas mainline at its Lower Zakum field

Abu Dhabi National Oil Company (ADNOC) announced the award of a $548 million (AED2.01 billion) contract for the construction of a new main gas line at its Lower Field of Zakum off Abu Dhabi. The price will increase the gas production capacity of the Lower Zakum field by 430 million to 700 million standard cubic feet per day (MMSCFD)supporting ADNOC’s plans to enable gas self-sufficiency for the United Arab Emirates (UAE) and meet rising global energy demand.

The Engineering, Procurement and Construction (EPC) contract was awarded by ADNOC Offshore to National Petroleum Construction Company (NPCC) after a competitive bidding process. Over 75% of the value of the award will flow back into the UAE economy under ADNOC’s In-Country Value (ICV) program and employment opportunities will be created for UAE nationals by the contractor, providing them with hands-on exposure to the execution of EPC contracts.

The new pipeline will accommodate the increased volume of associated gas produced by the Lower Zakum field as the field’s oil production capacity increases to 450,000 barrels of oil per day by 2025.

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ADNOC announces $548 million contract for a new gas mainline at its Lower Zakum field

Yaser Saeed Almazrouei, Executive Director of ADNOC Upstream, said: “This contract award will allow us to produce more gas as we increase the production capacity of the Lower Zakum field. This will support our Integrated Gas Master Plan which drives competitive gas recovery to enable UAE gas self-sufficiency and industrial growth, while helping to meet growing global energy demand. With over 75% of in-country value resulting from the award, the project will further spur economic growth and create opportunities for the private sector, in line with the wise directives of the UAE leadership. »

The project will be completed in 2025 and will see the construction of a new undersea pipeline that will stretch 85 km from the Zakum West super complex to Das Island. It also includes provisions to build, install and test a new platform in the super complex as well as a new gas receiving facility on Das Island.

Ahmad Saqer Al Suwaidi, CEO of ADNOC Offshore, said: “Lower Zakum is a strategic asset for ADNOC and the UAE and together with our international partners, we will continue to responsibly unlock and maximize land value in line with ADNOC’s Smart Growth Strategy 2030. This award is an important part of the estate’s long-term development plan and will help strengthen ADNOC’s position as a leading provider of low-cost, low-carbon energy for customers around the world.

ADNOC’s Gas Master Plan connects every link in the gas value chain to further unlock Abu Dhabi’s abundant gas reserves enabling domestic gas self-sufficiency, industrial growth and diversification, as well as to meet growing global demand for gas. Natural gas is playing an increasingly important role in the energy transition, both as a feedstock and as a fuel, because it burns with a significantly lower carbon intensity than coal.

With this award, ADNOC Offshore and its strategic international partners have invested more than $5 billion in recent weeks in the long-term development of Abu Dhabi’s offshore operations. The awards included contracts worth more than $3.4 billion awarded to ADNOC Drilling to accelerate offshore growth activities and a $1.1 billion contract awarded to ADNOC Logistics and Services to improve offshore operations .

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Source: ADNOC

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