ADNOC Awards $700 million EPC Project to Petrofac

Petrofac, the UK-based leading international service provider to the energy industry, on Friday announced that it has been selected by the Abu Dhabi National Oil Company (ADNOC) subsidiary, ADNOC Gas Processing, to undertake a significant new Engineering, Procurement and Construction (EPC) project at its Habshan gas compression facility.

The contract, awarded to Petrofac Emirates, is valued at approximately $700 million and involves the EPC of a new gas compressor plant. Comprising three gas compressor trains, associated utilities and power systems, the new plant will support ADNOC to substantially increase gas output from the Habshan Complex, West of Abu Dhabi.

The Habshan award is one of the largest onshore EPC deals awarded by ADNOC this year and the first for Petrofac since it was allowed to resume participation in ADNOC tenders, following its blacklisting by the state-owned operator in March 2021.

Most of the UAE natural gas imports come from Qatar through the Dolphin Energy pipeline project, a 3.2 Bcf per day, 226-mile subsea pipeline, which also connects to the other Emirates and Oman.

ADNOC Chief Executive Sultan Ahmed Al Jaber said that the Emirates wants to become a key LNG exporter on the back of several gas-focused upstream developments, including the $15 billion Hail & Ghasha sour gas project.

Feedstock for UAE Industries

Natural gas is an important feedstock for the UAE’s industrial sector as it serves as a primary energy source for many industrial processes.

ADNOC has the capacity to produce 11 billion standard cubic feet (SCF) of natural gas per day and over 1 billion SCF of sour gas per day, and much of this gas is supplied to customers in the UAE. ADNOC currently supplies over two-thirds of the UAE’s industrial sector’s power needs.

Tareq Kawash, Petrofac’s Group Chief Executive, said that they were excited to have been selected by ADNOC, one of Petrofac’s longest-standing customers, to undertake this significant new EPC project in our home market of the UAE.

“We very much look forward to working together with ADNOC to safely and sustainably develop this critical energy resource,” he added.

Elie Lahoud, Chief Operating Officer, Petrofac Engineering & Construction said that Petrofac has a long and strong track record supporting ADNOC in the UAE, rooted in our steadfast commitment to maximising local delivery, investing in the local supply chain, and developing local teams.

“This focus on In-Country Value will once again underpin our approach to delivery for ADNOC on the strategically significant Habshan Complex,” Lahoud added.

Petrofac first established a presence in the UAE in 1991 and has developed a large workforce to support both regional and international projects. With a commitment to deliver In-Country Value, Emiratisation is a key business priority and Petrofac is actively promoting current career opportunities.