Abu Dhabi National Oil Company (ADNOC) Offshore has awarded an engineering, procurement and construction (EPC) contract, worth $548m (AED2.01bn), to National Petroleum Construction Company (NPCC) for the construction of a new main gas line at its Lower Zakum field offshore of Abu Dhabi.
This move is aimed at bolstering the gas production capacity of Lower Zakum field from 430 million to 700 million standard cubic feet per day (MMSCFD).
It is part of ADNOC’s plans to enable the UAE achieve gas self-sufficiency while catering to the growing global demand for energy.
NPCC was awarded the contract following a competitive tender process.
This new pipeline will cater for the increased volume of associated gas from the field as its oil production capacity grows to 450,000 barrels of oil per day by next three years.
ADNOC upstream executive director Yaser Saeed Almazrouei said: “This contract award will enable us to produce more gas as we increase production capacity from 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.
“With over 75% in-country value resulting from the award, the project will further stimulate economic growth and create opportunities for the private sector, in line with the UAE Leadership’s wise directives.”
To be completed in three years, the project will see construction of a new subsea pipeline that will run 85km from Zakum West Super Complex to Das Island.
The contract also covers provisions for construction, installation and testing a new platform at the super complex and new gas receiving facility at Das Island.
ADNOC Offshore CEO Ahmad Saqer Al Suwaidi said: “Lower Zakum is a strategic asset for ADNOC and the UAE and working with our international partners, we will continue to responsibly unlock and maximize value from the field in line with ADNOC’s 2030 smart growth strategy.
“This award is an important part of the long-term development plan for the field and will help strengthen ADNOC’s position as a leading low-cost and low-carbon provider of energy for customers around the world.”
Image: The contract helps ADNOC to help bolster the gas production capacity of Lower Zakum field from 430 to 700 MMSCFD. Credit: Abu Dhabi National Oil Company (ADNOC).