The Abu Dhabi National Oil Company (ADNOC) has awarded two Front End Engineering Design (FEED) contracts for its planned offshore ultra-sour gas project, located in the Hail, Ghasha and Dalma fields in the UAE.
Bechtel (UK) was awarded the Hail & Ghasha FEED Contract while TechnipFMC (UAE) will work on Dalma field contract.
Collectively, the two FEED contracts are the largest ever awarded by an oil and gas company, underpinning the criticality of a detailed FEED phase to optimise project cost and schedule, according to a statement.
The project, located in the northwest offshore area of the Emirate of Abu Dhabi, could meet 20% of the UAE’s gas demand by the second half of the next decade.
HE 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.”
The Hail, Gasha and Dalma project taps into Abu Dhabi’s Arab formation, which is estimated to hold trillions of cubic feet of recoverable gas.
The FEED project is expected to produce more than one billion cubic feet of gas per day (cfd), enough gas to provide electricity to two million homes.
The oil and gas company previously awarded project management consultancy and artificial islands design and survey contracts to Artelia and KBR, formerly Kellogg Brown and Root.
ADNOC is also close to awarding five technology licensor contracts, which include a gas treatment licensor, a sulphur recovery unit (SRU) licensor, a natural gas liquids (NGL) licensor, a condensates recovery (hydro treaters) licensor, and a hydrogen generation licensor.