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ADNOC Announces $548 Million Contract to Build a New Major Gas Pipeline at its Lower Zakum Field

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Abu Dhabi National Oil Company (ADNOC) an award announced USD 548 million (AED 2.01 billion) contract to build a new major natural gas pipeline Lower Zakum Oil Field Offshore Abu Dhabi.The award will increase the natural gas production capacity of the Lower Zakum field from 430 million to 700 million Standard cubic feet per day (MMSCFD)supports ADNOC’s plans to achieve natural gas self-sufficiency in the United Arab Emirates (UAE) and meet growing global energy demands.

The Engineering, Procurement and Construction (EPC) contract was awarded to the National Petroleum Construction Company (NPCC) by ADNOC Offshore following a competitive bidding process. Under ADNOC’s Domestic Value (ICV) scheme, more than 75% of the award value will flow back to the UAE economy, and contractors will create jobs for UAE nationals, giving them a real opportunity to execute EPC contracts.

As the field’s oil production capacity increases to 450,000 barrels of oil per day by 2025, the new pipeline will meet the increased demand for associated gas produced by the Lower Zakum field.

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ADNOC Announces $548 Million Contract to Build a New Major Gas Pipeline at its Lower Zakum Field

ADNOC Upstream Executive Director Yaser Saeed Almazrouei 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 competitive gas recovery for the UAE gas self-sufficiency for industrial growth and industrial growth, while also helping to meet the world’s growing energy needs. With over 75% of the domestic value generated by the award, the project will further stimulate economic growth and create opportunities for the private sector, in line with UAE leadership wise instructions.

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 also includes provisions for the construction, installation and testing of new platforms at the super complex and a new gas receiving facility at Das Island.

Ahmad Saqer Al Suwaidi, CEO of ADNOC Offshore said: ‘Lower Zakum is a strategic asset for ADNOC and the UAE and we will work with our international partners to continue to responsibly unlock and maximise value in this sector in line with ADNOC’s Smart Growth Strategy 2030.’ The award is an important part of a long-term development plan for the field and will help strengthen ADNOC’s position as a 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.

With this award, ADNOC Offshore and its strategic international partners have invested over $5 billion in the long-term development of Abu Dhabi’s offshore business in recent weeks. These awards include 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.

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Source: ADNOC

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