ADNOC Awards USD1.36bln Contract

Maritime Activity Reports, Inc.

February 7, 2019

Image: ADNOC

Image: ADNOC

State-owned Abu Dhabi National Oil Company has awarded a contract worth Dh5 billion (USD1.36bln) to a UAE-based company for dredging, land reclamation and marine construction for artificial islands being developed as part of its offshore ultra sour Ghasha concession.

The contract awarded to the UAE’s National Marine Dredging Company (NMDC) is valued at AED 5 billion (US 1.36 billion) and will achieve substantial In-Country Value of over 70 percent. The Ghasha Concession consists of the Hail, Ghasha, Dalma, Nasr and Mubarraz offshore sour gas fields.

Under the terms of the contract, NMDC will construct 10 new artificial islands and two causeways, as well as expand an existing island, Al Ghaf.

The project is expected to take 38 months to complete and will provide the infrastructure required to further develop, drill and produce gas from the sour gas fields in the Ghasha Concession. At peak construction, the project is expected to employ over 3,500 people.

UAE Minister of State and ADNOC Group CEO, Dr. Sultan Ahmed Al Jaber said: “This award accelerates the development of the Hail, Ghasha and Dalma sour gas offshore mega-project, which is an integral part of ADNOC’s 2030 smart growth strategy. As one of the world’s largest sour gas projects it will make a significant contribution to the UAE’s objective to become gas self-sufficient and transition to a potential net gas exporter.

“NMDC was selected after a rigorous and competitive tender process. The award of this project to a UAE company will generate substantial In-Country Value, supporting local economic growth. In addition, it demonstrates the rapid progress ADNOC is making to leverage and create value from Abu Dhabi’s substantial, untapped, hydrocarbon resources.”

As part of the selection criteria for the contract, ADNOC carefully considered the extent to which bidders would maximize In-Country Value in the delivery of the project. This is a mechanism integrated with ADNOC’s tender evaluation process, aimed at nurturing new local and international partnerships and business opportunities, catalyzing socio-economic growth and creating job opportunities for UAE nationals.  

The successful bid by NMDC prioritized UAE sources for materials, as well as the use of mostly local suppliers, manufacturers and workforce, resulting in a total local spend of over AED 3.62 billion (almost US 1 billion). NMDC will also work with international partners to deliver the project.

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