ADNOC Awards Ghasha Contract
State-run oil and gas firm Abu Dhabi National Oil Co. has awarded a contract for the development of multiple artificial islands at its Ghasha Concession to National Marine Dredging Co.
The contract, valued at US$1.36 billion, includes breakbulk transport, dredging, land reclamation and marine construction of 10 new artificial islands.
“This award accelerates the development of the Hail, Ghasha and Dalma sour gas offshore mega-project, which is an integral part of ADNOC’s 2030 smart growth strategy. As one of the world’s largest sour gas projects it will make a significant contribution to the UAE’s objective to become gas self-sufficient and transition to a potential net gas exporter,” said Sultan Ahmed Al Jaber, CEO of ADNOC.
38-month Timeline
The project is expected to take 38 months and once complete will provide the infrastructure for increased gas production from the sour gas fields in the Ghasha Concession.
“We are proud of our partnership with ADNOC and to be awarded this exciting new mega-project. We are also very pleased at the contribution this project will make to the local UAE economy, to supporting ADNOC’s gas developments, and to progressing the UAE's strategy to develop the maritime sector, in order to compete globally,” said Mohammed Al Rumaithi of NMDC.
The giant Ghasha Concession is expected to produce more than 1.5 billion cubic feet of gas per day when it comes on stream around the middle of the next decade, driving significant breakbulk uptick over the period. ADNOC recently awarded a 25 percent stake in the Ghasha Concession to Italy’s Eni, a 10 percent stake to Germany’s Wintershall and 5 percent to Austria’s OMV.
Domestic Spending
Ranked as the world's 12th-largest oil company by production, ADNOC controls most of the country’s oil fields, the seventh-largest proven reserves of oil in the world at 97.8 billion barrels. The firm last year announced an “aggressive downstream strategy” to invest US$45 billion over the next five years.
Key to this investment has been a commitment to domestic spending and cultivate local breakbulk expertise. At peak construction of the artificial islands is expected to employ more than 3,500 people with NMDC announcing it will spend” almost US$1 billion of the contract award in the UAE.”
“Enhancing in-country value is an important part of our work plan in the National Marine Dredging Co., as it is for ADNOC. We aim to increase the use of local resources, such as products, facilities and infrastructure in this sector of dredging equipment and services,” Rumaithi added.
Photo: ADNOC representatives at signing ceremony. Credit: ADNOC
