Abu Dhabi National Oil Company (ADNOC) has awarded two front-end engineering design (FEED) contracts for its planned offshore ultra-sour gas mega-project to Bechtel (UK) and TechnipFMC (UAE).

The gas project consists of Hail, Ghasha, and Dalma fields, located in the north-west offshore area of Abu Dhabi.

Bechtel (UK) secured the contract for Hail & Ghasha fields, while TechnipFMC (UAE) received for the Dalma field.

The offshore ultra-sour gas mega-project could meet 20% of the country’s gas requirement by the second half of the next ten years.

UAE Minister of State and ADNOC Group CEO Dr Sultan Ahmed Al Jaber 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.”

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By GlobalData

In addition to FEED contracts, ADNOC is close to awarding five technology licensor agreements.

“This FEED award provides ADNOC with the potential to unlock additional undeveloped sour gas reserves.”

These contracts consist of 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. These contracts will help in the FEED phase.

ADNOC upstream business director Abdulmunim Saif Al Kindy said: “The decision to award both FEED contracts came after a rigorous and extremely competitive tendering process, ensuring we will strictly manage costs by working with contractors that can deploy effective engineering and robust value-add technologies.

“In progressing with these projects, we create the potential to capitalise on our success and experience in ultra-sour gas production, gained from the development of the Shah field, the largest project of its kind in the world.”

For the FEED phase, ADNOC plans to implement an integrated project delivery (IPD) strategy, which will help it to cut down the project’s development schedule and cost by involving all stakeholders including potential EPC bidders, major manufacturers, and governmental bodies. These stakeholders are important to enhance design quality, precision of engineering jobs and detect uncertainties.

These fields tap into Abu Dhabi’s Arab formation, which is estimated to contain trillions of cubic feet of recoverable gas. The project is expected to generate more than one billion cubic feet of gas per day, which is enough to provide power for two million homes.

The FEED agreements were awarded after the project management consultancy and artificial islands design and survey contracts were granted to Artelia and KBR.