ADNOC contracts Bechtel, TechnipFMC for sour gas project FEED
Abu Dhabi National Oil Co. has awarded two front-end engineering design contracts for an ultra-sour gas project related to the offshore Hail, Ghasha and Dalma fields.
In man-hours, ADNOC claims, these are the largest FEED contracts ever issued by an oil and gas company.
The project, in the northwest offshore area of Abu Dhabi, could satisfy 20% of the UAE’s gas demand by the late 2020s.
In addition, ADNOC is close to awarding five technology licensor contracts, covering gas treatment, a sulfur recovery unit, natural gas liquids, condensates recovery (hydro treaters), and hydrogen generation.
All these technologies are said to be critical to successful execution of the FEED phase.
Abdulmunim Saif Al Kindy, director of ADNOC’s Upstream business, said: “In progressing with these projects, we create the potential to capitalize 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 first time, the company will adopt an integrated project delivery approach during the FEED phase, with the goal of cutting the project’s development schedule and cost by involving all relevant stakeholders.
These include potential EPC bidders, major manufacturers and governmental bodies, to help improve design quality, identify uncertainties, and enhance the precision of certain engineering tasks.
Another factor in the contract awards was the extent to which the bidders would help to drive in-country value for the UAE, improving knowledge transfer and creating job opportunities for UAE nationals.
The Hail, Gasha and Dalma project taps into Abu Dhabi’s Arab formation, estimated to hold several tcf of recoverable gas and capable of delivering more than 1 bcf/d, sufficient to provide electricity to two million homes.
Previously, ADNOC awarded project management consultancy and artificial islands design/survey contracts to Artelia andKBR.