Adnoc awards $1.36bn contract for Ghasha offshore concession
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Adnoc awards $1.36bn contract for Ghasha offshore concession

07 Feb 2019

The Abu Dhabi National Oil Company (Adnoc) has awarded a AED5bn ($1.36bn) contract to the National Marine Dredging Company (NMDC) for the construction of artificial islands to develop, drill, and produce gas from the Ghasha offshore concession.

Adnoc awards $1.36bn contract for Ghasha offshore concession
NMDC will construct two causeways to expand the existing Al Ghaf island. Credit: Abu Dhabi National Oil Company.

The Abu Dhabi National Oil Company (Adnoc) has awarded a AED5bn ($1.36bn) contract to the National Marine Dredging Company (NMDC) for the construction of artificial islands to develop, drill and produce gas from the Ghasha offshore concession.

The offshore sour gas fields Hail, Ghasha, Dalma, Nasr and Mubarraz form the Ghasha Concession.

Under the terms of the dredging, land reclamation and marine construction contract, NMDC will build ten multiple artificial islands in the first phase of the Ghasha Concession development.

NMDC, which was selected following a competitive tender process, will also be responsible for the construction of two causeways and expansion of the existing Al Ghaf island.

Expected to take 38 months to complete, the project will provide the necessary infrastructure to further produce gas from the fields.

More than 3,500 jobs will be created at the project’s peak construction.

Adnoc Group CEO Dr Sultan Ahmed Al Jaber said: “This award accelerates the development of the Hail, Ghasha and Dalma sour gas offshore mega-project, which is an integral part of Adnoc’s 2030 smart growth strategy.

“This award accelerates the development of the Hail, Ghasha and Dalma sour gas offshore mega-project, which is an integral part of Adnoc’s 2030 smart growth strategy.”

“As one of the world’s largest sour gas projects, it will make a significant contribution to the UAE’s objective to become gas self-sufficient and transition to a potential net gas exporter.”

The company will deliver the project in collaboration with international partners.

Artificial islands enable the use of lower-cost land-drilling rigs instead of costly offshore jack-up drilling rigs. They also provide cost and environmental benefits in shallow water.

In November, Adnoc signed an agreement to offer a 25% stake in its Ghasha ultra-sour gas offshore concession to Eni.

Eni will fund 25% of the project’s development costs.