Abu Dhabi National Oil Company (ADNOC) has announced the award of a $548 million (AED2.01 billion) EPC contract to National Petroleum Construction Company (NPCC) to build a new main gas line at its Lower Zakum field offshore of Abu Dhabi.
The award is aimed at increasing the Lower Zakum field’s gas production capacity 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 the increasing global energy demand.
Over 75% of the award value will flow back into the UAE economy under ADNOC's In-Country Value (ICV) programme and job opportunities will be created for UAE Nationals by the contractor, providing them practical exposure to executing EPC contracts.
The new pipeline will cater to 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.
Yaser Saeed Almazrouei, ADNOC Upstream Executive Director, said, "This (award) will support our integrated gas masterplan which is driving competitive gas recovery to enable gas self-sufficiency for the UAE and industrial growth, while also helping to meet the increasing global demand for energy.“
The project will be completed in 2025 and it will see the construction of a new subsea pipeline that will run 85 kilometres from Zakum West Super Complex to Das Island. It also includes provisions to construct, install and test a new platform at the super complex as well as a new gas receiving facility at Das Island.
Meanwhile, Ahmad Saqer Al Suwaidi, ADNOC Offshore CEO has said that the award is an important part of the long-term development plan for the field and will help strengthen ADNOC’s position as a leading global low-cost and low-carbon provider of energy.
Natural gas is playing an increasingly important role in the energy transition as both a feedstock and a fuel as it burns with 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 enhance offshore operations.
