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Abu Dhabi National Oil Company (ADNOC) has awarded a $548 million engineering, procurement, and construction (EPC) contract to National Petroleum Construction Company (NPCC) to build a gas pipeline at its offshore Lower Zukum field as part of its plan to boost gas production.
New pipeline will transport increased volume of associated gas produced by Lower Zakum as the field's oil production capacity increases to 450,000 barrels of oil per day by 2025, the state oil company said in a statement on Monday.
Yaser Saeed Almazrouei, ADNOC Upstream Executive Director, said the new pipeline will enable the company to produce more gas from Lower Zakum field.
"This will support our integrated gas masterplan which is driving competitive gas recovery to enable gas self-sufficiency for the UAE and industrial growth, while also helping to meet the increasing global demand for energy."
ADNOC said that over 75% of the total award value will flow back into the UAE economy as part of the company’s In-Country Value programme.
The project, part of Abu Dhabi's gas masterplan, will be completed in 2025. The new subsea pipeline will run 85 kilometers from Zakum West Super Complex to Das Island. This is part of the first phase of ADNOC's Lower Zakum long-term development plan (LTDP-1).
The contract also includes provisions to construct, install and test a new platform at the super complex as well as a new gas receiving facility at Das Island.
Abu Dhabi is spending billions of dollars to expand its gas production capacity as its boosts its role in the energy transition both as a feedstock and a fuel, as it burns with significantly lower-carbon intensity than coal.
(Writing by Brinda Darasha; editing by Daniel Luiz)
