ADNOC Logistics and Services announced today that it has been awarded a $975-million engineering, procurement and construction (EPC) contract by ADNOC Offshore for an artificial island at the Lower Zakum offshore field. This marks the first award of the new EPC logistics business unit following ADNOC L&S’ record-breaking listing this month.
As part of ADNOC’s In-Country Value program, at least 75% of the total contract value for dredging, land reclamation, and marine construction of an artificial island “G” for the Lower Zakum field , will flow back into the UAE economy.
This award is a significant milestone in ADNOC L&S’ strategy to pursue new growth opportunities, the company said in a statement. The provision of EPC services in the integrated logistics business is a new offering by ADNOC L&S in line with its announced strategy to achieve significant ongoing growth, including expansion into new verticals.
The EPC market is expected to experience substantial growth in the region in the coming years. The company aims to offer a broader range of services to its customers while facilitating the growth of ADNOC’s upstream and downstream operations..
According to ADNOC, the award is part of Lower Zakum’s Long-Term Development Plan, aiming to safely and sustainably unlock greater value while helping to meet the increasing global energy demand.
ADNOC L&S is targeting an average annual EBITDA growth in the low teens over the medium term. This growth will be driven by new contract awards, further expansion of its Integrated Logistics Services Platform (ILSP), and optimized redeployment of jack-up barges.
