ADNOC cancels offshore UAE Dalma project awards

April 16, 2020
ADNOC has notified the Petrofac Emirates joint venture of the termination of two recently awarded contracts for the Dalma gas development, 140 km (87 mi) offshore Abu Dhabi’s northwest coast.

Offshore staff

LONDONADNOC has notified the Petrofac Emirates joint venture of the termination of two recently awarded contracts for the Dalma gas development, 140 km (87 mi) offshore Abu Dhabi’s northwest coast.

Petrofac said it is committed to working with ADNOC over the next few weeks on alternative options for delivering the project to suit ADNOC’s needs in the current challenging environment.

The contracts were awarded in February, with Petrofac Emirates' scope of work valued at $1.5 billion.

One, a 33-month lump-sum contract, covered gas processing facilities at Arzanah island. The work scope included inlet facilities with gas processing and compression units, power generation units, utilities and associated infrastructure.

For the second package, a joint venture with SapuraKencana, was a 30-month lump-sum contract covering three new wellhead platforms, removal and replacement of an existing topsides, new pipelines, subsea umbilicals, composite and fiber-optic cables.

Dalma is part of the Ghasha ultra-sour gas concession, said to be central to ADNOC’s objective of gas self-sufficiency for the UAE.

Petrofac added that it was continuing to tender for major contracts in Abu Dhabi, although this development may impact timing of any awards.

04/16/2020