ADNOC awards $324mn worth contracts to enhance onshore field operations

The Abu Dhabi National Oil Company (ADNOC) of the UAE has awarded contracts worth $324 million to improve onshore field operations and efficiencies.

ADNOC Onshore, a branch of ADNOC, granted three contracts for acquiring and constructing flowlines and wellhead installations across several onshore oil fields in Abu Dhabi to sustain long-term production.

The engineering, procurement and construction of a new bypass system to provide major support for the current crude receiving stations at the Jebel Dhanna and Fujairah export terminals have also been included in the contract which was awarded to Galfar Engineering and Contracting and Robt Stone.

Under ADNOC’s In-Country Value (ICV) program for strengthening the company’s commitment to maximizing value for the nation about 70 percent of the combined award value will flow back into the UAE’s economy itself.

Yaser Saeed Almazrouei, Executive Director of ADNOC’s Upstream Directorate states that, “these awards further highlight ADNOC’s drive to invest responsibly to unlock greater value from our assets and resources and build long-term resilience as we deliver our 2030 strategy.”

As part of the selection criteria for the awards, ADNOC considered the extent to which bidders would maximize ICV in the delivery of the project. This is a system integrated into ADNOC’s tender valuation procedure which focuses on enhancing new local and international partnerships and business opportunities, promoting socio-economic growth and creating job opportunities for UAE nationals.

“These contracts build on the momentum of our recent awards for upgrades on the Jebel Dhanna terminal and underline our commitment to unlocking the full potential of our assets and fields to deliver increased value for our shareholders and contribute to ADNOC’s objective to create a more profitable upstream business.”

The two PC contracts allotted for flowlines and wellheads were divided into two parts. The first contract was awarded to Galfar Engineering & Contracting, worth approximately $71 million and will procure and construct flowlines and wellhead installations for the ADNOC Onshore Asab and Sahil fields.

The second contract was acquired by Robt Stone at the value of nearly $168 million and it will obtain and construct flowlines and wellhead installations for the ADNOC Onshore Bab field.

The capacity of the contract includes works such as residual engineering, procurement, construction, pre-commissioning and commissioning of natural oil producer wells and water injection wells at the respective fields. Both contracts are projected to be finished in five years.

The third contract, which was awarded to Galfar Engineering and Contracting, is of $84 million and will build a new bypass system. The project is expected to be completed in 30 months.