Adnoc to award Ghasha field islands contract

09 January 2019
Offshore field requires creation of new islands to house ultra-sour gas processing facilities

Abu Dhabi National Oil Company (Adnoc) is set to award a major contract for the reclamation of a series of islands for the development of the Hail and Ghasha offshore sour gas fields, the company’s upstream director Abdulmunim al-Kindy said on 9 January.

“The Ghasha concession is a new challenging development. Ultra-sour, offshore and expensive. It requires the construction of new islands. We are ready to award the EPC [engineering, procurement and construction],” Al-Kindy said on the sidelines of an energy forum in Abu Dhabi.

The contract will cover the construction of six artificial islands at the two fields.

Launched in the middle of 2018, contractors are understood to have submitted bids to Adnoc in late August. The prequalified bidders included:

  • Archirodon (Greece)
  • China Harbour Engineering Company (China)
  • Dredging International (Belgium)
  • Hyundai Engineering & Construction (South Korea)
  • Jan De Nul (Belgium)
  • National Marine Dredging Company (local)
  • Royal Boskalis Westminster (Netherlands)
  • Six Construct Abu Dhabi (local/Belgium)
  • Van Oord (Netherlands)

US-based Bechtel was awarded the front-end engineering and design (feed) contract for the Hail and Ghasha fields.

Sources have previously told MEED the islands project is scheduled for completion 36 months after the planned start date in May next year, while the facilities will be built in 40 months and completed by the third quarter of 2023.

EPC contracts for the planned new production facilities, which will be housed on the islands, are expected to be awarded before the end of 2019, the sources said.

Once the facilities are complete, Adnoc will be able to produce its first gas from the two fields in early 2024.

France’s TechnipFMC is doing the feed for Dalma, another sour gas field containing high levels of hydrogen sulphide. All three fields are located in Abu Dhabi’s North West Area. Their development is expected to produce more than 1 billion (cf/d), which Adnoc has said would meet about 20 per cent of the UAE’s current demand.

In November 2017, Adnoc announced a $109bn spending programme over the next five years, with much of the budget earmarked for the development of sour gas reserves. Although technically challenging and expensive to develop, the resources will help the emirate reduce its reliance on costly imported gas.

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