ADNOC Announces $548 Million Contract for New Main Gas Line

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Abu Dhabi National Oil Company (ADNOC) has announced the award of a $548 million (Dhs 2.01 billion) contract to construct a new gas mainline at its Lower Zakum field offshore Abu Dhabi. ‘Abu Dhabi.

The award will increase gas production capacity at the Lower Zakum field from 430 million to 700 million standard cubic feet per day, supporting ADNOC’s plans to enable gas self-sufficiency in the UAE and meet the growing global energy demand.

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

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.

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 unlock and maximize land value responsibly. in line with ADNOC’s 2030 Smart Growth Strategy. 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.

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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