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Adnoc awards $324m onshore contracts

Issac John /Dubai
issacjohn@khaleejtimes.com Filed on October 26, 2020
BOOK Business: Adnoc Onshore awarded three contracts which will see the procurement and construction of flowlines and wellhead installations across several onshore oil fields in Abu Dhabi. — File photo

Adnoc Onshore, a subsidiary of Adnoc, awarded the three contracts.

Energy giant Abu Dhabi National Oil Company (Adnoc) announced on Monday the award of three contracts worth $324 million to optimise onshore field operations and enhance efficiencies.

Adnoc Onshore, a subsidiary of Adnoc, awarded the three contracts which will see the procurement and construction of flowlines and wellhead installations across several onshore oil fields in Abu Dhabi.

“The contracts also include engineering, procurement, and construction of a new bypass system to provide critical backup for the existing crude receiving stations at the Jebel Dhanna and Fujairah export terminals,” the energy major said in a statement.

Over 70 per cent of the combined award value will flow back into the UAE economy under Adnoc’s In-Country Value (ICV) programme, reinforcing its commitment to maximizing value for the nation.

The two procurement and construction contracts awarded for flowlines and wellheads are split into two parts. The first contract, valued at approximately $71 million is awarded to Galfar Engineering & Contracting. The contractor will procure and construct flowlines and wellhead installations for the ADNOC Onshore Asab and Sahil fields.

The second contract, valued at approximately $168 million, is awarded to Robt Stone. The contractor will procure and construct flowlines and wellhead installations for the Adnoc Onshore Bab field.

Yaser Saeed Almazrouei, executive director of Adnoc’s Upstream Directorate, said the awards further highlight Adnoc’s drive to invest responsibly to unlock greater value from its assets and resources and build long-term resilience as it delivers the 2030 strategy. “The contracts follow a competitive tender process that ensures that substantial value will flow back into the UAE through our ICV programme, reinforcing Adnoc’s commitment to supporting local business and stimulating the growth and diversification of the nation’s economy,” said Almazrouei.

“These contracts build on the momentum of our recent awards for upgrades on the Jebel Dhanna terminal and underline our commitment to unlocking the full potential of our assets and fields to deliver increased value for our shareholders and contribute to Adnoc’s objective to create a more profitable upstream business,” said Omar Obaid Al Nasri, CEO of Adnoc Onshore.

Al Nasri said the award for flowlines and wellhead installations would help sustain long-term production at Bab, Asab, and Sahil fields while the award for the bypass system would provide critical backup for the existing crude receiving station connecting Adnoc fields and export terminals, to ensure business continuity and resilience.

The awards follow $245 million worth of contracts announced in September to upgrade oil pipeline and crude receiving facilities at the Jebel Dhanna terminal.

China Petroleum Pipeline Engineering Co. and Abu Dhabi-based Target Engineering Construction Co. won the engineering, procurement and construction contracts that will be completed in 30 months. issacjohn@khaleejtimes.com

author

Issac John

Editorial Director of Khaleej Times, is a well-connected Indian journalist and an economic and financial commentator. He has been in the UAE's mainstream journalism for 35 years, including 23 years with Khaleej Times. A post-graduate in English and graduate in economics, he has won over two dozen awards. Acclaimed for his authentic and insightful analysis of global and regional businesses and economic trends, he is respected for his astute understanding of the local business scene.





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