Abu Dhabi, September 5 (BNA) The Abu Dhabi National Oil Company (ADNOC) announced today the signing of a $548 million contract (AED 2.01 billion) to build a new main gas pipeline in the Lower Zakum field off the coast of Abu Dhabi. .
The award will increase gas production capacity in the Lower Zakum field from 430 million to 700 million standard cubic feet per day (MMSCFD), supporting ADNOC’s plans to enable gas self-sufficiency for the UAE and meet the growing global demand for energy, Emirates News Agency (News Agency) Emirates) (WAM) reported.
The Engineering, Procurement and Construction (EPC) contract was awarded by ADNOC Offshore to the National Petroleum Construction Company (NPCC) after a competitive bidding process. More than 75 percent of the award value will return to the UAE economy under the ADNOC In-Country Value Program, and job opportunities will be provided to UAE nationals by the contractor, providing them with a practical opportunity to implement engineering, procurement and construction contracts.
The new pipeline will meet the increased volume of associated gas produced by the Lower Zakum field, as the field’s production capacity will increase to 450,000 barrels of oil per day by 2025.
For his part, Yasser Saeed Al Mazrouei, CEO of ADNOC Exploration and Production, said: “This contract will enable us to produce more gas while increasing production capacity from the Lower Zakum field. This will support our integrated gas master plan that is driving competitive gas extraction to enable autonomous gas. – Enough for a country. UAE and industrial growth, while also helping to meet the growing global demand for energy. With more than 75 percent of the in-country value generated by the award, the project will stimulate economic growth and create opportunities for the private sector, in line with the rational directives of the UAE leadership” .
The project will be completed in 2025 and will see the construction of a new subsea pipeline extending 85 kilometers from the Zakum West Super complex to Das Island. It also includes provisions for the construction, installation and testing of a new platform at the mega complex as well as a new gas receiving facility on Das Island.
Ahmed Saqr Al Suwaidi, CEO of ADNOC Offshore, said: “The Lower Zakum field is a strategic asset for ADNOC and the UAE, we will continue to work with our international partners, and we will continue to unlock value and maximize the value of this field in line with ADNOC’s 2030 smart growth. This award is an important part of the field’s long-term development plan and will help cement ADNOC’s position as a leading provider of low-cost, low-carbon energy to customers around the world.”
ADNOC’s Gas Master Scheme connects every part of the gas value chain to unleash Abu Dhabi’s abundant gas reserves, enabling domestic gas self-sufficiency, industrial growth, and diversification, as well as meeting growing global gas demand. Natural gas plays an increasingly important role in the energy transition as a feedstock and fuel because it burns at a much 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 offshore operations in Abu Dhabi. Awards included contracts worth more than $3.4 billion awarded to ADNOC Drilling to accelerate offshore growth activities, and a contract award worth $1.1 billion to ADNOC Logistics & Services to enhance offshore operations.
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