The Abu Dhabi National Oil Company (ADNOC) awarded a AED 2.01 billion contract to build a new main gas line at its Lower Zakum field offshore of Abu Dhabi, WAM reported on Monday.
Its offshore unit awarded the Engineering, Procurement and Construction (EPC) contract to Abu Dhabi-based National Petroleum Construction Company (NPCC).
The award will increase the field offshore’s gas production capacity from 430 million to 700 million standard cubic feet per day (MMSCFD).
This will support the state-owned oil company’s plans to enable gas self-sufficiency for the UAE and cater to increasing global energy demand.
“This contract award will enable us to produce more gas as we increase production capacity from the Lower Zakum field. This 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,” ADNOC’s upstream executive director, Yaser Saeed Almazrouei said.
The new pipeline will cater to the increased volume of associated gas produced by the Lower Zakum field as oil production capacity increases to 450,000 barrels of oil per day by 2025.
Over 75 percent of the award value will flow back into the UAE economy under ADNOC’s In-Country Value (ICV) programme, opening job prospects in the private sector.
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, WAM said, adding it will include provisions to construct, install and test a new platform at the super complex as well as a new gas receiving facility at Das Island.
“Lower Zakum is a strategic asset for ADNOC and the UAE, and working with our international partners, we will continue to responsibly unlock and maximise value from the field in line with ADNOC’s 2030 smart growth strategy,” ADNOC’s offshore chief executive officer Ahmad Saqer Al Suwaidi said.
ADNOC Offshore and its strategic international partners have invested over $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,” WAM said.
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