ADNOC awards FEED contracts for major sour gas project

After awarding several key contracts, ADNOC makes progress on a mega offshore sour gas project which could ultimately meet 20 per cent of the UAE's gas demand.

Dr Sultan Al Jaber, Group CEO of the Abu Dhabi National Oil Company
Dr Sultan Al Jaber, Group CEO of the Abu Dhabi National Oil Company

The Abu Dhabi National Oil Company (ADNOC) has awarded the two Front End Engineering Design (FEED) contracts for its planned offshore ultra-sour gas mega project, which consists of the Hail, Ghasha and Dalma fields. Bechtel was awarded the Hail and Ghasha FEED contracts while TechnipFMC was awarded the Dalma FEED Contract.

The project, in the northwest offshore area of Abu Dhabi, could meet 20 per cent of the UAE’s gas demand by the second half of the next decade.

Dr Sultan Ahmed Al Jaber, UAE Minister of State and ADNOC Group CEO, said: “The growth in energy demand in Abu Dhabi, and the wider UAE, has prompted ADNOC to further harness its gas resources, as part of its 2030 smart growth strategy. This FEED award provides ADNOC with the potential to unlock additional undeveloped sour gas reserves and will allow us to deliver against our strategic objective to ensure a sustainable and economic supply of gas.”

In addition to awarding the FEED contracts, ADNOC is near to awarding five technology licensor contracts, covering a gas treatment licensor; a sulphur recovery unit licensor; a natural gas liquids licensor; a condensates recovery licensor and a hydrogen generation licensor.

The Hail, Ghasha and Dalma project taps into Abu Dhabi’s Upper Jurassic Arab formation, which is estimated to hold trillions of cubic feet of recoverable gas and from which the project is expected to produce more than one billion cubic feet of gas per day, enough to provide electricity to an estimated two million homes.

The awarding of FEED contracts follows the awarding of the project management consultancy and artificial islands design and survey contracts to Artelia and KBR, formerly Kellogg Brown and Root.

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