Abu Dhabi’s ADNOC grants $324m worth of contracts to optimise onshore field operations

The Abu Dhabi National Oil Company (ADNOC) has awarded $324m (Dhs1.19bn) worth of contracts to optimise its onshore field operations and enhance efficiencies, it announced on October 26.

ADNOC Onshore, a subsidiary of ADNOC, awarded the three contracts, which will see the procurement and construction (PC) of flowlines and wellhead installations across several onshore oil fields in Abu Dhabi.

The two PC contracts are split into two parts: The first contract, valued at around $71m (Dhs261.2m), is awarded to Galfar Engineering & Contracting (WLL – Emirates). Meanwhile, the second contract, worth approximately $168m (Dhs618.2m), is awarded to Robt Stone (Middle East LLC). Both contractors will procure and construct flowlines and wellhead installations for the ADNOC Onshore Bab field, with the former contractor extending the same for the Sahil field as well.

The scope of work includes residual engineering, procurement, construction, pre-commissioning, and commissioning of natural oil producer wells and water injection wells at the respective fields. Both contracts are expected to be completed in five years.

The third contract, the EPC awarded to Galfar Engineering and Contracting (WLL – Emirates), is valued at approximately $84m (Dhs309.1m). It will create a new bypass system to provide critical backup for ADNOC Onshore’s existing crude receiving stations at the Jebel Dhanna and Fujairah export terminals. The project is expected to be completed in 30 months.

Over 70 per cent of the combined award value will flow back into the local economy under ADNOC’s In-Country Value (ICV) programme.

“These awards further highlight ADNOC’s drive to invest responsibly to unlock greater value from our assets and resources and build long-term resilience as we deliver our 2030 strategy,” said Yaser Saeed Almazrouei, executive director of ADNOC’s Upstream Directorate.

“The contracts follow a competitive tender process that ensures that substantial value will flow back into the UAE through our ICV programme, reinforcing ADNOC’s commitment to supporting local business and stimulating the growth and diversification of the nation’s economy.”

ADNOC vetted the bidders and their extent to maximise ICV in the delivery of the project – a mechanism that is integrated into the company’s tender evaluation process.

Omar Obaid Al Nasri, CEO of ADNOC Onshore, said: “These contracts build on the momentum of our recent awards for upgrades on the Jebel Dhanna terminal and underline our commitment to unlocking the full potential of our assets and fields to deliver increased value for our shareholders and contribute to ADNOC’s objective to create a more profitable upstream business.

“The award for flowlines and wellhead installations will help sustain long-term production at our Bab, Asab, and Sahil fields while the award for the bypass system will provide critical backup for the existing crude receiving station connecting our fields and export terminals, to ensure business continuity and resilience.”

In September, ADNOC signed two framework agreements with Mubadala Investment Company and ENEC to partner on its ICV programme.

Read: Abu Dhabi’s ADNOC signs agreement with Mubadala, ENEC to partner on In-Country Value programme