Posted inEPC ContractsExploration & Production

ADNOC awards NPCC $548 million contract for Lower Zakum expansion

The award will increase Lower Zakum field’s gas production capacity to 700 Mcf/d

(Source: ADNOC)

Abu Dhabi National Oil Co (ADNOC) has awarded a $548 million EPC contract to state-owned National Petroleum Construction Co (NPCC) to build a new main gas line at its Lower Zakum field offshore of Abu Dhabi.

The award will increase Lower Zakum field’s gas production capacity from 430 to 700 Mcf/d, supporting ADNOC’s plans to enable gas self-sufficiency, the company said on Monday.

Additionally, the new pipeline will cater for the increased volume of associated gas produced by Lower Zakum field as the field’s oil production capacity increases to 450,000 barrels of oil per day by 2025.

ADNOC’s long-term development

“This award is an important part of the long-term development plan for the field and will help strengthen ADNOC’s position as a leading low-cost and low-carbon provider of energy for customers around the world,” Ahmad Saqer Al Suwaidi, ADNOC Offshore CEO, said in a statement.

According to ADNOC, the project will be completed in 2025 including the construction of a new subsea pipeline that will run 85 kilometers from Zakum West Super Complex to Das Island. It 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.

During the past few weeks, ADNOC Offshore and its partners have invested more than $5 billion 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 and a $1.1 billion contract awarded to ADNOC Logistics and Services to enhance offshore operations.