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The Abu Dhabi National Oil Company (ADNOC) has awarded a US$548 million engineering, procurement and construction (EPC) contract to the National Oil Construction Company (NPCC) for the construction of a gas pipeline at its Lower Zukum offshore oil field , produced as part of its ramp-up plan.
The new pipeline will carry more associated gas produced by Lower Zakum as the field’s oil production capacity will increase to 450,000 barrels of oil per day by 2025, the state oil company said in a statement on Monday.
ADNOC upstream executive director Yaser Saeed Almazrouei said the new pipeline will allow the company to produce more gas from the Lower Zakum field.
“This will support our integrated gas master plan, which is driving competitive gas recovery to achieve gas self-sufficiency in the UAE and industrial growth, while also helping to meet growing global demand for energy.”
ADNOC said that more than 75% of the total reward value will flow back to the UAE economy as part of the company’s domestic value program.
The project is part of the Abu Dhabi Gas Master Plan and will be completed by 2025. The new subsea pipeline will run 85 kilometers from the Zakum West Super Complex to the island. This is part of the first phase of the Zakum Long Term Development Plan (LTDP-1) under ADNOC.
The contract also includes terms 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.
Abu Dhabi is spending billions to expand its natural gas production capacity as its role as a feedstock and fuel in the energy transition improves because it burns significantly less carbon-intensive than coal.
(Writing by Brinda Darasha; Editing by Daniel Luiz)
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