UAE’s ADNOC awards major contracts for sour gas mega project

UAE's Abu Dhabi National Oil Company (ADNOC) on Tuesday said it has awarded two Front End Engineering Design (FEED) contracts for its planned offshore ultra-sour gas mega project, covering Hail, Ghasha and Dalma fields.

UK’s Bechtel was awarded Hail & Ghasha FEED contract, while UAE-based TechnipFMC bagged the deal for Dalma,the company said in a statement.

The project, in the north-western area of Abu Dhabi, is likely to meet nearly 20 percent of the UAE’s gas demand by the second half of the next decade.

The FEED contracts follow the awarding of the project management consultancy and artificial islands design and survey contracts to Artelia and KBR (formerly Kellogg Brown and Root), the statement said.

ADNOC is also evaluating five technology licensors contracts covering Gas Treatment, Sulphur Recovery Unit (SRU), Natural Gas Liquids (NGL), condensates recovery (hydro treaters) and Hydrogen Generation to facilitate successful execution of the FEED phase.

The company said it will implement the Integrated Project Delivery (IPD) approach from the start of the FEED stage, which will enable it to reduce the project’s schedule and cost.

The Hail, Ghasha and Dalma project taps into Abu Dhabi’s Arab formation, which is estimated to hold multiple trillions of cubic feet of recoverable gas that is expected to produce over one billion cubic feet of gas per day, sufficient to power two million homes, ADNOC said.