UAE’s ADNOC awards $548m contract for gas line

WAM

Abu Dhabi National Oil Company (ADNOC) has awarded a $548 million (AED 2.01 billion) contract to build a new main gas line at its Lower Zakum field offshore of Abu Dhabi.

The award will increase the Lower Zakum field’s gas production capacity from 430 million to 700 million standard cubic feet per day (MMSCFD), according to WAM, state news agency.

ADNOC Offshore awarded the engineering, procurement and construction (EPC) contract to National Petroleum Construction Company (NPCC) after a competitive tender process.

The new pipeline will cater to the increased volume of associated gas produced by the Lower Zakum field as the field’s oil production capacity increases to 450,000 barrels of oil per day by 2025.

The project will be completed in 2025 and will see the construction of a new subsea pipeline that will run 85 kilometres from Zakum West Super Complex to Das Island.

It 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.

ADNOC Offshore and its strategic global partners have invested more than $5 billion in the long-term development of Abu Dhabi’s offshore operations in recent weeks, the news agency said.

The awards included contracts worth more than $3.4 billion awarded to ADNOC Drilling and a $1.1 billion contract awarded to ADNOC Logistics and Services.