Page 4 - MEOG Week 34

MEOG Commentary MEOG
Flurry of
contract awards
for ADNOC
The Abu Dhabi National Oil Co. (ADNOC) has made a series of awards aimed at improving the rm’s procurement process and taking its sour gas development plans forward
Uae
What:
The state rm has awarded deals that focus on improving capabilities to ramp up its production of both oil and gas from existing and newly formed concessions.
Why:
ADNOC has ambitious oil output targets and is increasingly looking to develop its large sour gas deposits to produce feedstock for its growing downstream sector.
What next:
An award is anticipated on a major offshore EPC contract in early 2020.
ABu Dhabi National Oil Co. (ADNOC) last week announced a string of contract awards as well as issuing tender documents for o shore oil eld work.
e state rm released a statement to notify the market about a set of billion-dollar deals for casing and tubing to various overseas contrac- tors, while Norway’s Aker Solutions reported that it had won a deal to supply umbilicals for an o shore gas project.
Reports then emerged in industry press that ADNOC had issued tender documents for a major deal for infrastructure at the o shore Hail and Ghasha elds.
tubes
ADNOC awarded the $3.65bn worth of con- tracts for casing and tubing as part of a move to implement smart procurement.
e main winner was Tenaris, which signed a $1.9bn contract to provide tubulars and its proprietory Rig Direct services for the next ve years, with an option for a two-year extension. e Luxembourg-based company is represented in the contract by local rm Consolidated Sup- pliers Establishment.
ADNOC also awarded contracts to Abu Dhabi Oil eld Services Co. (ADOS), represent- ing Vallourec of France, and Habshan Trading Co., representing Japan’s Marubeni-Itochu Steel.
The state oil firm noted that the contracts include more than $100mn in foreign direct investment (FDI) over ve years “to establish a state-of-the-art oil country tubular goods (OCTG) threading plant and repair centre, and a training academy in Abu Dhabi to enhance local expertise and generate value for the uAE”. e deals cover a total of 1mn tonnes of casing and tubing.
ADNOC said that the scope of the awards would cover the company’s forecasted demand for casing and tubing. ADNOC intends to increase conventional drilling by 40% by 2025 as well as drive upwards the number of unconven- tional wells following the April announcement
of new crude production goals of raising output from 3.5mn barrels per day to 4mn bpd by 2020, and to 5mn bpd by 2030.
e Emirati rm is seeking to improve e - ciency with the optimised procurement strat- egy and ADNOC said that the contract award was the “ rst in a series of drilling-related pro- curement expenditures with an overall value of $15bn that ADNOC plans to make in the next ve years and is part of its $134bn ve-year cap- ital expenditure” plan.
It said that the other categories were down- hole completion equipment, wellheads, christmas trees, liner hangers, drilling uids, directional drilling, cementing and wireline logging.
Dalma deal
On August 21, Aker reported that it had been awarded a $78mn contract by ADNOC to supply umbilicals for the Dalma o shore gas project.
It said that the scope of the deal included more than 100km of four steel tube umbili- cals. “ e umbilical system will provide power supply, communication services and chemical injection uids [and] will connect the subsea equipment to three new wellhead platforms and link the topside equipment located on the o shore control platform to equipment located onshore,” the Norwegian rm disclosed.
In December 2018, ADNOC finalised the line-up of international shareholders in the rm’s newly created offshore sour gas concession, awarding a 5% stake to Austria-based OMV in the Ghasha ultra-sour gas concession. is spans a large area o the emirate’s north-west coast encompassing the Dalma, Ghasha, Hail, Mubarraz, Nasr and SARB elds.
OMV had been working with ADNOC and the uS’ Occidental Petroleum (Oxy) at the Dalma, Ghasha and Hail elds since 2016 under a four-year contract encompassing seismic sur- veys, drilling and engineering, and had been tak- ing the lead on some of the early contracting on the development of the three assets.
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w w w . N E W S B A S E . c o m Week 34 27•August•2019