The Abu Dhabi National Oil Company (ADNOC) has awarded a $548 million (Dh2.01 billion) contract to build a new main gas line at its Lower Zakum field offshore of Abu Dhabi.
The award will increase Lower Zakum field’s gas production capacity from 430 million to 700 million standard cubic feet per day (MMSCFD), the company said on Monday.
The project will be completed in 2025 and it will see the construction of a new subsea pipeline that will run 85 kilometres from Zakum West Super Complex to Das Island.
The Engineering, Procurement and Construction (EPC) contract was awarded to National Petroleum Construction Company (NPCC), and will see over 75 per cent of the award value will flow back into the UAE economy under ADNOC’s In-Country Value (ICV) programme.
The new pipeline will cater to the increased volume of gas produced by Lower Zakum field as the field’s oil production capacity increases to 450,000 barrels of oil per day by 2025.
Yaser Saeed Almazrouei, ADNOC Upstream Executive Director, 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.”
The project also includes provisions to construct, install and test a new platform at the super complex as well as a new gas receiving facility at Das Island.
Ahmad Saqer Al Suwaidi, ADNOC Offshore CEO, said: “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.”
With this award, ADNOC Offshore and its strategic international partners have invested more than $5 billion in recent weeks in the long-term development of Abu Dhabi’s offshore operations. The awards included contracts worth more than $3.4 billion awarded to ADNOC Drilling to accelerate offshore growth activities and a $1.1 billion contract awarded to ADNOC Logistics and Services to enhance offshore operations.