Dalma Gas Development Project : Petrofac, Sapura Energy win contracts from ADNOC

Dalma Gas Development Project contracts : The Abu Dhabi National Oil Company (ADNOC) has awarded two construction contracts worth over $1.65 billion for the offshore facilities for the Dalma gas project in the Ghasha ultra-sour gas concession in the UAE.

The two engineering, procurement and construction contracts (EPC contracts) were given to Petrofac Emirates and a joint venture between the company and Sapura Energy.

Expected to be executed by 2022, the two contracts will enable the Dalma Gas Development Project to produce nearly 340 million standard cubic feet per day (mmscfd) of natural gas. The offshore gas project is located roughly 190 kilometers northwest of Abu Dhabi city.

The Dalma gas project is an important part of the Ghasha ultra-sour gas project which is core to ADNOC’s strategic target of enabling gas self-sufficiency for the UAE.

Commenting on the Dalma Gas Development Project contracts, Yaser Saeed Almazrouei – Executive Director of ADNOC Upstream Directorate said: “This award marks another important milestone in the development of the Ghasha concession which is an integral component of our strategy to achieve gas self-sufficiency for the UAE. It demonstrates how ADNOC is effectively collaborating with strategic partners that can deploy state-of-the-art technologies and world-class expertise to accelerate the development of Abu Dhabi’s substantial gas resources.

“Petrofac and Sapura Energy were selected to deliver this crucial project after an extremely competitive and rigorous tender process that ensures that 70 percent of the award value will flow into the UAE’s economy as In-Country Value, stimulating local economic growth and supporting the diversification of the nation’s economy in line with the leadership’s wise directives.”

Awarding of the Dalma Gas Development Project contracts. Photo courtesy of Abu Dhabi National Oil Company.

Details of the Dalma Gas Development Project contracts

According to Petrofac, the first contract is worth $1.065 billion, which is for the EPC of the gas processing facilities at Arzanah island. As per the terms of the 33-month lump-sum contract, Petrofac will be responsible for the inlet facilities with gas processing and compression units, power-producing units, utilities, and other related infrastructure.

The second package, valued at $591 million will see Petrofac lead a joint venture with Sapura Energy’s subsidiary SapuraKencana HL Sdn. Bhd. Abu Dhabi. As per the terms of the 30-month lump-sum contract, the joint venture will work on three new well-head platforms, removal and replacement of an existing topside, subsea umbilicals, new pipelines, composite and fibre optic cables.

George Salibi – Engineering & Construction Chief Operating Officer at Petrofac, commenting on the Dalma Gas Development Project contracts, said: “Petrofac has a strong track record in the UAE, with a presence here since 1991 and around 3,000 staff in country. We are fully committed to supporting continued and sustainable investment in Abu Dhabi’s oil and gas industry through our strategic focus on maximising local delivery, and are pleased that our approach will generate substantial In-Country Value for the local economy.

“These latest contract awards build on our existing relationship with ADNOC Group companies and we look forward to delivering this mega project in a safe, successful and sustainable manner.”