Abu Dhabi National Oil Company (ADNOC) has announced a $548m contract to National Petroleum Construction Company (NPCC) to construct a new main gas line at its Lower Zakum field, offshore Abu Dhabi, UAE.
The engineering, procurement and construction (EPC) contract, which was awarded by ADNOC Offshore, is aimed at increasing the gas production capacity of the Lower Zakum field from 430 million standard cubic feet per day (MMSCFD) to 700MMSCFD.
As the oil production capacity of Lower Zakum rises to 450,000 barrels of oil per day (B/D) by 2025, the new pipeline is expected to cater for the increased volume of associated gas produced by the field.
ADNOC upstream executive director Yaser Almazrouei said: “This contract award will enable us to produce more gas as we increase production capacity from Lower Zakum field.
“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.”
As part of the project, a new subsea pipeline will be built, stretching 85km from Das Island to Zakum West super complex.
Expected to be completed in 2025, the project also contains plans for the development, installation, and testing of a new platform at the complex and a new gas receiving facility at Das Island.
The expanded gas production capacity of the Lower Zakum field is said to align with ADNOC’s gas masterplan to help the UAE achieve self-sufficiency for gas and cater to growing global energy demand.
ADNOC Offshore CEO Ahmad Suwaidi said: “Lower Zakum is a strategic asset for ADNOC and the UAE and working with our international partners, we will continue to responsibly unlock and maximize value from the field in line with ADNOC’s 2030 smart growth strategy.
“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.”
Recently, ADNOC awarded five framework agreements worth $1.83bn with an objective to expand its low carbon oil and gas production capacity.
