Adnoc Offshore has awarded a $548 million contract on a new main gas line to National Petroleum Construction Co. (NPCC).
The engineering, procurement and construction (EPC) award will boost the Lower Zakum’s field to more than 700 million cubic feet per day. This is up from 430 mmcf per day.
The pipeline will handle the increased volumes of associated gas, produced as oil production rises to 450,000 barrels per day by 2025. The gas line should start up the same year.
“This contract award will enable us to produce more gas as we increase production capacity from Lower Zakum field,” said Adnoc Upstream executive director Yaser Saeed Almazrouei.
“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.”
More than 75% of the contract value will flow into the United Arab Emirates economy, under Adnoc’s in-country value (ICV) programme. NPCC will also create new jobs for locals, it said.
The subsea gas pipeline will run for 85 km from Zakum West Super Complex to Das Island. The EPC contract also covers the construction, installation and testing of a new platform at the field, in addition to a gas receiving facility at Das.
Adnoc Offshore and its partners have now committed to investing more than $5 billion in the offshore in recent weeks. This includes a $3.4bn award to Adnoc Drilling and $1.1bn award to Adnoc Logistics and Services.
“Lower Zakum is a strategic asset for ADNOC and the UAE and working with our international partners, we will continue to responsibly unlock and maximise value from the field in line with ADNOC’s 2030 smart growth strategy,” said Ahmad Saqer Al Suwaidi, ADNOC Offshore CEO.
“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.”