NPCC to Build $548 Million Pipeline Offshore Abu Dhabi
Abu Dhabi National Oil Company (ADNOC) has awarded a $548 million contract to National Petroleum Construction Company (NPCC) to build a new gas pipeline at its Lower Zakum field offshore of Abu Dhabi.
The new subsea pipeline will run 85 km (about 53 miles) from Zakum West Super Complex to Das Island and is expected to be completed in 2025.
The award will help the Lower Zakum field’s gas production capacity from 430 million to 700 million standard cubic feet per day (MMscf/d), supporting ADNOC’s plans to enable gas self-sufficiency for the United Arab Emirates (UAE) and cater for increasing global energy demand.
The new line will support the increased volume of associated gas produced at Lower Zakum field as the field’s oil production capacity increases to 450,000 barrels of oil per day by 2025.
Over 75% of the award value will flow back into the UAE economy under ADNOC's In-Country Value (ICV) program and job opportunities will be created for UAE Nationals by the contractor, providing them practical exposure in executing EPC contracts.
ADNOC’s gas masterplan links every part of the gas value chain to further unlock Abu Dhabi’s abundant gas reserves enabling domestic gas self-sufficiency, industrial growth and diversification, as well as to meet growing global gas demand. Natural gas is playing an increasingly important role in the energy transition as both a feedstock and a fuel as it burns with significantly lower-carbon intensity than coal.
With this award, ADNOC Offshore and its strategic international partners have invested more than $5 billion in recent weeks in the long-term development of Abu Dhabi's offshore operations. The awards included contracts worth more than $3.4 billion awarded to ADNOC Drilling to accelerate offshore growth activities and a $1.1 billion contract awarded to ADNOC Logistics and Services to enhance offshore operations.
“This contract award will enable us to produce more gas as we increase production capacity from Lower Zakum field,” Yaser Saeed Almazrouei, ADNOC upstream executive director, said. “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. With over 75% in-country value resulting from the award, the project will further stimulate economic growth and create opportunities for the private sector, in line with the UAE Leadership’s wise directives.”
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