ADNOC signs $548m contract with Abu Dhabi’s Lower Zakum

Arthur Said AlmazruiADNOC Upstream Executive Director said: “This contract award will enable us to produce more gas as we ramp up production capacity in the Lower Zakum field. This will support our integrated gas master plan, which is driving a competitive Natural gas recovery to achieve gas self-sufficiency in the UAE and industrial growth, while also helping to meet growing global energy needs.

“According to the wise direction of the UAE leadership, the project will capture more than 75% of the domestic value, which will further stimulate economic growth and create opportunities for the private sector.”

The project will be completed in 2025 and will build a new subsea pipeline from the Zakum West Super Complex to Das Island, 85km in length. It will also include provisions for the construction, installation and testing of the new platform at the super complex, as well as the new gas receiving facility on Das Island.

Ahmed Saqr SuwaidiADNOC Offshore CEO added: “Lower Zakum is a strategic asset for ADNOC and the UAE, and in collaboration with our international partners, we will continue to responsibly unlock and maximize value in this sector in line with ADNOC’s 2030 Smart Growth Strategy .

“The award is an important part of a long-term development plan for the field and will help strengthen ADNOC’s position as the leading low-cost and low-carbon energy provider to customers around the world.”

ADNOC’s gas master plan links every part of the gas value chain to further unlock Abu Dhabi’s rich gas reserves for domestic gas self-sufficiency, industrial growth and diversification, and to meet growing global gas demand. Natural gas is playing an increasingly important role as a feedstock and fuel in the energy transition because it burns significantly less carbon-intensive than coal.

The award of the contract means ADNOC Offshore and its strategic international partners have invested more than US$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 to ADNOC Drilling to accelerate offshore growth activities and $1.1 billion to ADNOC Logistics and Services to strengthen offshore operations.