ADNOC awards £248m onshore contracts

Abu Dhabi National Oil Company (ADNOC) has awarded contracts worth £248.8 million to optimise onshore field operations and enhance efficiencies as it continues to invest to drive smart growth.

ADNOC Onshore, a subsidiary of ADNOC, has awarded three contracts that will see the procurement and construction (PC) of flowlines and wellhead installations across several onshore oilfields in the Emirate of Abu Dhabi. The contracts also include the engineering, procurement, and construction of a new bypass system, which will provide critical backup for the existing crude receiving stations at the Jebel Dhanna and Fujairah export terminals, the statement adds.

Yaser Saeed Almazrouei, Executive Director of ADNOC’s Upstream Directorate, said: “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. 

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

The contracts were awarded to Galfar Engineering and Contracting (WLL – Emirates) and Robt Stone (Middle East LLC), the statement continues.

Over 70% of the combined award value will flow back into the United Arab Emirates’ (UAE) economy under ADNOC’s In-Country Value (ICV) program, reinforcing ADNOC’s commitment to maximizing value for the nation.

As part of the selection criteria for the project, ADNOC explains that it carefully considered the extent to which bidders would be able to maximise ICV in the delivery of the project. 

This is a mechanism integrated into ADNOC’s tender evaluation process, aimed at nurturing new local and international partnerships and business opportunities, fostering socio-economic growth, and creating job opportunities for UAE nationals. The successful bids by the two contractors prioritised UAE sources for materials, local suppliers, and workforce.

The two PC contracts awarded for flowlines and wellheads are split into two parts. The first contract, valued at approximately £54.5 million, is awarded to Galfar Engineering & Contracting (WLL - Emirates). The contractor will procure and construct flowlines and wellhead installations for the ADNOC Onshore Asab and Sahil fields, the statement explains.

The second contract, valued at approximately £129 million, is awarded to Robt Stone (Middle East LLC). The contractor will procure and construct flowlines and wellhead installations for the ADNOC Onshore Bab field.

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 statement adds. 

The third contract, the EPC awarded to Galfar Engineering and Contracting (WLL – Emirates), is valued at approximately $84 million. 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 statement explains. 

The project is expected to be completed in 30 months.