Canadian player to work on ADNOC’s power project for offshore operations

UAE’s Abu Dhabi National Oil Company (ADNOC) has awarded a long-term deal to Canada’s SNC-Lavalin for its offshore operations power project, which is expected to spearhead the UAE giant’s decarbonisation efforts and aid in turning its net-zero goals into reality.

SNC-Lavalin announced on Wednesday that it was awarded a four-year advisory and engineering services contract by ADNOC to support its offshore operations power project. The project will power ADNOC’s offshore production operations with cleaner and more efficient energy and is described as a first-of-its-kind high-voltage, direct current (HVDC-VSC) subsea transmission system in the Middle East and North Africa (MENA) region.

Ian L. Edwards, President and CEO of SNC-Lavalin, remarked: “Our work with ADNOC on this significant project will support the UAE Net-Zero by 2050 Strategic Initiative and reinforces our commitment to work with our global clients on their net-zero journeys.”

The $3.6 billion project – revealed in December 2021 – is being developed in partnership with Abu Dhabi National Energy Company PJSC (TAQA) and is expected to reduce the carbon footprint of ADNOC’s offshore operations by more than 30 per cent.

It will replace existing offshore gas turbine generators with more sustainable power sources available on the Abu Dhabi onshore power network. To achieve this, two subsea HVDC-VSC links will be developed from onshore Alternating Current (AC) power substations to artificial islands.

According to SNC-Lavalin, its scope of work includes the design review of the converter stations, the submarine cables, integration with the onshore and offshore grid, as well as reviewing the implementation plans for HSE, Quality Control (QC) and Quality Assurance (QA) of contractors.

Additionally, the Canadian player will provide supervision throughout the construction and commissioning phases while the project will be supported by the company’s global HVDC Center of Excellence in Canada, and its regional expertise based in the Middle East.

Dale Clarke, CEO, Engineering Services, Canada at SNC-Lavalin, commented: “SNC-Lavalin’s Canadian HVDC Centre of Excellence (CoE) has been active in the field for half a century. This CoE has delivered close to 50 landmark projects across five continents and adapts each project to its unique environments.”  

Several contracts related to this project have already been awarded. Hitachi Energy will connect ADNOC’s offshore operations to the onshore power grid, owned and operated by TAQA’s transmission and distribution companies, while Prysmian will supply power cables for the HVDC-VSC subsea power transmission system.

When it comes to ADNOC’s recent deals, it is worth reminding that the UAE player awarded framework agreements valued at $658 million in March 2022 for cementing services in a bid to enable drilling growth and expand its crude oil production capacity.

Prior to this, the company awarded another batch of framework agreements in February 2022 to four oilfield services providers valued at $1.94 billion in pursuit of drilling growth.

In addition, the UAE giant made an investment in January 2022 to support its oil production capacity plans with a $946 million engineering, procurement, and construction (EPC) deal awarded to compatriot National Petroleum Construction Company (NPCC) for the strategic long-term development of its Umm Shaif field.