The agreement made in February this year has fallen through due to Covid-19. Credit: ADNOC

Petrofac and Sapura Energy have signed engineering and construction deals with the Abu Dhabi National Oil Company (ADNOC) worth a combined $1.65bn for a massive gas project in the United Arab Emirates (UAE).

Under the contracts, the companies will build the UAE’s Dalma Gas Development Project, 190km northwest of Abu Dhabi. When completed, this will produce 340 million cubic feet (9.6 million cubic metres) of gas per day.

Petrofac subsidiary Petrofac Emirates has signed two deals with (ADNOC). The larger of the contracts is for Petrofac to assist in the construction of gas processing facilities on Arzanah Island, 80km west of Abu Dhabi in the Persian Gulf.

The company will receive a lump-sum of $1.065bn dollars to build the facility over 33 months. Facilities on the small island are expected to include gas processing, dehydration and compression units, power generation, utilities and infrastructure.

The second contract for engineering, procurement and construction on the Dalma Gas Development project for ADNOC was awarded to a joint venture between Petrofac and Sapura Energy and will be worth $591m.

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Work here will include engineering, construction and installation of three new platforms at wellheads, while one existing platform will be replaced. The four platforms are in the Hair Dalma, Satah and Bu Haseer fields.

Sapura Energy will provide a vessel from its fleet to lay 189km of undersea pipes, umbilicals and cables to connect the facilities. Work is expected to take 30 months, completing in 2022.

ADNOC’s executive director of upstream Yaser Saeed Almazrouei said: “Petrofac and Sapura Energy were selected to deliver this crucial project after an extremely competitive and rigorous tender process.

“[This] ensures that 70% of the award value will flow into the UAE’s economy as in-country value, stimulating local economic growth and supporting the diversification of the nation’s economy.”

Petrofac chief operating officer of engineering and construction George Salibi said: “These latest contract awards build on our existing relationship with ADNOC Group companies and we look forward to delivering this mega project in a safe, successful and sustainable manner.”

The Dalma Gas field is owned by ADNOC, Eni, Wintershall and OMV.