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In early October, state-run Abu Dhabi National Oil Company (ADNOC) awarded a landmark carbon capture, utilisation and storage (CCS) project to the UK-based Petrofac, a leading international service provider to the energy industry.
The Engineering, Procurement and Construction (EPC) contract was awarded by ADNOC Gas for its Habshan Carbon Capture, Utilisation and Storage project, which has the capacity to store up to 1.5 million tonnes a year of carbon dioxide.
Prior to that, in June, Petrofac had won another project from ADNOC, which involves EPC of a new gas compressor plant to increase gas output.
“Having secured new work with ADNOC we continue to bid on a number of future projects, with a diverse pipeline of opportunities in Petrofac’s core MENA region….. It’s an increasingly active market,” said Khaled Al-Shrouf, Senior Vice President – Operations at Petrofac.
“These two strategically significant ADNOC projects see us extend our credentials in one of our home markets and deepen our relationship with one of our longest-standing clients,” he told Zawya Projects in an interview.
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Regarding the ADNOC project awarded in October, how long will it take to be completed? What are the costs involved?
Petrofac’s legacy in the UAE dates back to 1991 and we have developed a large workforce here supporting projects in Abu Dhabi, the other Emirates, and internationally.
Our most recent award in-country is an Engineering, Procurement and Construction (EPC) contract from ADNOC Gas for its Habshan Carbon Capture, Utilisation and Storage (CCUS) project.
It is one of the largest carbon capture projects in the Middle East and North Africa and a sign of the at-scale new opportunities across energy transition for the region.
The project will be able to capture and permanently store up to 1.5 million tonnes a year of carbon dioxide within geological formations deep underground and is expected to be commissioned in 2026. The contract is valued at $615 million.
In June 2023 we were selected by ADNOC Gas to undertake another significant new project for its Habshan Complex.
That contract is valued at approximately $700 million and involves the EPC of a new gas compressor plant to increase gas output.
These two strategically significant ADNOC projects see us extend our credentials in one of our home markets and deepen our relationship with one of our longest-standing clients.
Are you bidding for more such projects in the UAE and other Gulf states?
Having secured new work with ADNOC we continue to bid on a number of future projects, with a diverse pipeline of opportunities in Petrofac’s core MENA region. It’s an increasingly active market.
We have an extensive track record here, with exceptional capabilities to deliver and strong customer relationships.
There is a tendency by many countries in the Middle East to take on environment and climatic projects...how do you see the project outlook for Petrofac in the region...In other words, where does the company stand among major firms vying for a share in the region?
Decarbonisation is a key driver for the region’s energy sector and with the UAE hosting COP28, the focus continues to grow. At Petrofac, everything we do is connected, in one way or another, with the energy transition.
We see it as a clear opportunity for innovation, value creation and differentiation. There are many dimensions – decommissioning aging assets, reducing the intensity of existing assets, designing, and building a new generation of lower intensity hydrocarbon assets, and creating the assets of the future in areas like wind, hydrogen and carbon capture.
It is not a niche issue or a future issue and it’s companies like Petrofac that are needed to transform the theory of decarbonisation into a reality.
(Reporting by Nadim Kawach; Editing by Anoop Menon)
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