ADNOC awards engineering contracts for sour gas fields

Abu Dhabi National Oil company (ADNOC) has awarded engineering design contracts worth hundreds of millions of dirhams for the production of sour gas from its Hail, Ghasha and Dalma marine fields.

The fields, located offshore of northwestern Abu Dhabi, are expected to meet 20 per cent of the UAE’s gas needs by the second half of the next decade, equivalent to power for two million homes.

UK firm Bechtel was awarded the Hail and Ghasha feed contracts and UAE-based Technip FMC was awarded the Dalma feed contract.

The agreements were described as the largest awarded by an oil and gas company in terms of working hours.

ADNOC said it was also close to awarding five contracts for technology licensees including for gas treatment, sulfur recovery, natural gas liquids, hydrothermal condensate extraction and hydrogen generation

“The decision to award the initial engineering design contracts follows a rigorous and competitive bidding process that ensures cost control by collaborating with contractors capable of employing the latest engineering technologies that deliver additional value,” said ANOC director of exploration, development and production Abdulmoneim Saif Al Kindi.

The three fields are estimated to contain several trillion cubic feet of recoverable gas and will produce more than one billion cubic feet of gas per day.

Artelia and KBR were previously awarded consulting contracts for the project management, design and survey of artificial islands for the project.

ADNOC already produces sour gas from the Shah field and has announced plans to spend more than Dhs400bn ($109bn) in the next five years to boost gas output and invest in international downstream activities.

Read: ADNOC to spend over $109bn to boost gas, downstream

Read: UAE’s Shah gas project hits full output capacity – official

Separately Reuters reported on Tuesday that ADNOC plans to raise a $3bn syndicated loan with the participation of Japan’s export credit agency, Japan Bank for International Cooperation.

Sources told the news wire ADNOC had chosen HSBC, Mizuho and Sumitomo Mitsui Banking Corp to arrange the planned debt facility, which is expected to have a five-year maturity.