ADNOC Dishes Out $2B Deals  | Rigzone

Date:

Share post:


Abu Dhabi National Oil Company (ADNOC) has announced the award of two “substantial” contracts totaling $2 billion (AED 7.49 billion) to ADNOC Drilling for the Hail and Ghasha Development Project.

The deals comprise $1.3 billion (AED 4.89 billion) for integrated drilling services and fluids and $711 million (AED 2.6 billion) for the provision of four Island Drilling Units, ADNOC revealed. A third contract, valued at $681 million (AED 2.5 billion), was also awarded to ADNOC Logistics & Services for the provision of offshore logistics and marine support services, ADNOC highlighted.

According to ADNOC, more than 80 percent of the value of the awards will flow back into the UAE’s economy under ADNOC’s In-Country Value (ICV) program and all three of the contracts will cover the Hail and Ghasha drilling campaign for a maximum of ten years. The Hail and Ghasha Development Project is part of the Ghasha Concession, which ADNOC notes is the world’s largest offshore sour gas development.

“These substantial awards mark another important milestone in the delivery of the Ghasha mega-project,” Ahmed Al Jaber, the Minister of Industry and Advanced Technology and Managing Director and Group CEO of ADNOC, said in a company statement.

“They also demonstrate the deep expertise and experience within ADNOC Drilling and the wider group to efficiently deliver complex projects that enable gas expansion, while generating substantial in-country value to drive economic growth and diversification,” he added in the statement.

“Abu Dhabi’s vast gas resources can play an increasingly important role in providing lower-carbon energy to meet the demands of today and tomorrow, while the world still relies on hydrocarbons. As we responsibly execute this development, we continue to explore ways to accelerate project delivery and further reduce emissions, together with our strategic international partners,” Al Jaber went on to say.

Production from the Ghasha Concession is expected to start around 2025 and is anticipated to ramp up to produce more than 1.5 billion standard cubic feet per day of natural gas before the end of the decade.

In November last year, ADNOC announced the award of two engineering, procurement and construction contracts totaling $1.46 billion (AED 5.36 billion) for the Dalma Gas Development Project, which is part of the Ghasha Concession. The two EPC contracts, awarded to National Petroleum Construction Company (NPCC) and a joint venture between Técnicas Reunidas and Target Engineering, include the construction of gas conditioning facilities, wellhead topsides, pipelines and umbilicals, ADNOC revealed at the time.

Last month, ADNOC announced that it had identified $19 billion (AED 70 billion) worth of products in its procurement pipeline that could be manufactured locally. The company noted at the time that, out of this value, it had signed agreements for local manufacturing opportunities worth $5.7 billion (AED 21 billion) with UAE and international companies at the Make it in the Emirates Forum in Abu Dhabi. 

ADNOC describes itself as one of the world’s leading energy producers and a primary catalyst for the growth and diversification of the Abu Dhabi economy. The company has a production capacity of more than four million barrels of oil per day and around 11 billion cubic feet of natural gas per day, according to its website.

To contact the author, email [email protected]





Source link

spot_img

Related articles

21 British Tweets That Kept Me Laughing This Week

"Obsessed with Darlington bidding to host Eurovision. That’s the kind of ambitious confidence I need to have...

MLB odds: How Fernando Tatis’ suspension affects Padres’ title odds

The San Diego Padres will be without superstar Fernando Tatis Jr. this season as the...

Pediatrician group slams its own members over transgender teen puberty blocker criticism: ‘Disinformation’

NEWYou can now listen to Fox News articles! Messages reportedly leaked from the American Academy of...
%d bloggers like this: