ADNOC Onshore awards $324m contracts to Galfar and Robt Stone

The Abu Dhabi National Oil Company (ADNOC) has awarded three contracts worth $324 million (AED 1.19 billion) through its subsidiary ADNOC Onshore for streamlining onshore field operations and boost efficiencies.

According to the UAE national oil company, the three contracts will involve the procurement and construction of flowlines and wellhead installations across various onshore oil fields in Abu Dhabi.

Also included is as engineering, procurement, and construction (EPC) contract pertaining to the Jebel Dhanna and Fujairah export terminals.

ADNOC awarded the contracts to Galfar Engineering and Contracting (WLL – Emirates) and Robt Stone (Middle East).

More than 70% of the combined award value will come back into the UAE economy under the In-Country Value (ICV) program of ADNOC.

Yaser Saeed Almazrouei – Executive Director of ADNOC Upstream Directorate said: “These awards further highlight ADNOC’s drive to invest responsibly to unlock greater value from our assets and resources and build long-term resilience as we deliver our 2030 strategy.

“The contracts follow a competitive tender process that ensures that substantial value will flow back into the UAE through our ICV program, reinforcing ADNOC’s commitment to supporting local business and stimulating the growth and diversification of the nation’s economy.”

ADNOC Onshore awards $324m contracts to Galfar and Robt Stone. Photo courtesy of Abu Dhabi National Oil Company

The two procurement and construction contracts given for flowlines and wellheads are divided into a couple of parts.

The first contract worth around $71 million (AED 261.2 million) was awarded to Galfar Engineering & Contracting (WLL – Emirates). The contractor will be responsible for procuring and constructing flowlines and wellhead installations for ADNOC Onshore’s Asab and Sahil fields.

The second contract worth around $168 million (AED 618.2 million) to Robt Stone (Middle East) involves procurement and construction of flowlines and wellhead installations for ADNOC Onshore’s Bab field.

The scope of work of the two contracts covers residual engineering, procurement, construction, pre-commissioning, and also commissioning of natural oil producer wells and water injection wells at the respective fields. The contracts are anticipated to be completed in five years.

The third contract has been awarded to Galfar Engineering and Contracting (WLL – Emirates), which is worth around $84 million (AED 309.1 million). The EPC contract is for creating a new bypass system to deliver critical backup for ADNOC Onshore’s existing crude receiving stations located at the Jebel Dhanna and Fujairah export terminals.

The project is likely to be wrapped up in 30 months.

Omar Obaid Al Nasri – CEO of ADNOC Onshore said: “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.

“The award for flowlines and wellhead installations will help sustain long-term production at our Bab, Asab, and Sahil fields while the award for the bypass system will provide critical backup for the existing crude receiving station connecting our fields and export terminals, to ensure business continuity and resilience.”