Bechtel, TechnipFMC Secure ADNOC Sour Gas FEED Contracts
- Business & Finance
The Abu Dhabi National Oil Company (ADNOC) has awarded two front end engineering design (FEED) contracts for ADNOC’s planned offshore ultra-sour gas mega project, which consists of the Hail, Ghasha and Dalma fields.
Bechtel (UK) has been awarded Hail & Ghasha FEED contract and TechnipFMC (UAE) has been awarded Dalma FEED Contract.
According to ADNOC, in man-hours, the two FEED contracts, collectively, are the largest awarded by an oil and gas company, underpinning the criticality of a detailed FEED phase to optimize project cost and schedule.
The project, in the northwest offshore area of the Emirate of Abu Dhabi, could meet 20 percent of the UAE’s gas demand by the second half of the next decade.
In addition to awarding the FEED contracts, ADNOC is near to awarding five technology licensor contracts, covering a gas treatment licensor; a sulphur recovery unit (SRU) licensor; a natural gas liquids (NGL) licensor; a condensates recovery (hydro treaters) licensor and a hydrogen generation licensor.
Abdulmunim Saif Al Kindy, director of ADNOC’s Upstream business, said: “The decision to award both FEED contracts came after a rigorous and extremely competitive tendering process, ensuring we will strictly manage costs by working with contractors that can deploy effective engineering and robust value-add technologies. 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.”
The Hail, Gasha and Dalma project taps into Abu Dhabi’s Arab formation, which is estimated to hold multiple trillions of cubic feet of recoverable gas and from which the project is expected to produce more than one billion cubic feet of gas per day (cfd), enough gas to provide electricity to two million homes.