UAE's ADNOC awards $1.65 bil contracts to Petrofac for Dalma gas project

Dubai — Abu Dhabi National Oil Co., the UAE's biggest oil producer, awarded two contracts for $1.65 billion to a Petrofac-led group to develop the Dalma ultra-sour natural gas project as the emirate seeks gas self-sufficiency.

The Dalma Gas Development project, which is set to produce 340 million standard cubic feet/day of gas, will be completed in 2022, ADNOC said in a statement on Tuesday. Dalma is part of the Ghasha mega-project that is expected to produce over 1.5 bscf/d of gas when it comes on stream around the middle of this decade. Two contracts were awarded to UK-based Petrofac and a joint venture between Petrofac and Sapura Energy of Malaysia.

"The Ghasha project has the potential to meet nearly 20 percent of the UAE's gas demand by the second half of this decade," ADNOC said. "In addition, more than 120,000 barrels per day of oil and high-value condensates are expected to be produced when the project is fully on stream."

ADNOC, which is currently producing 10.5 bscf/d, is aiming to help the UAE become self-sufficient in gas production. The UAE currently imports gas from Qatar and the emirate of Dubai buys LNG from international markets. ADNOC produces about 3 million b/d of crude oil.

The Ghasha concession is made up of the Hail, Ghasha, Dalma, Nasr, SARB, Bu Haseer, Shuweihat and Mubarraz offshore sour gas fields in Abu Dhabi. ADNOC holds the majority stake in the concession, with Italy's Eni, Germany's Wintershall, Austria's OMV and Russia's LUKOIL holding the remainder.