Page 14 - MEOG Week 17

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ADNOC seeks subsea first for MENA region
Calling it the first project of its kind in the Middle East and North Africa (MENA) region, Abu Dhabi National Oil Co. (ADNOC) reported Monday that it has issued a joint tender with Abu Dhabi Power Corp. (ADPower) to develop and operate a high- voltage, direct current (hVDC) subsea power transmission network.
The hVDC system would link ADNOC’s offshore production facilities to ADPower’s onshore electricity grid, ADNOC noted in
a written statement. According to ADNOC, the partnership could optimize power supply costs for offshore facilities by replacing existing offshore localized gas turbine generators with a more diverse array of energy sources – including renewables and nuclear power. “This project will meet our future offshore power needs, even as our fields
mature, using diverse and sustainable sources,” remarked Yaser Saeed Al Mazrouei, ADNOC’s upstream executive director. “It will lower ADNOC and the UAE’s carbon footprint whilst at the same time enabling ADNOC
to utilize the natural gas currently used to power our offshore facilities for higher-value purposes. Equally, the project will deliver operational expenditure reductions in the long run as well as lasting strategic benefits as we continue to drive sustainable value and responsible investment opportunities that stimulate economic growth for Abu Dhabi and the UAE in the current market environment.”
According to ADNOC, proposal requests have been sent to international companies with the requisite experience in such infrastructure projects. It did not identify the companies in Monday’s written statement.
“As we continue to accelerate the transformation of Abu Dhabi’s water and electricity sector, ADPower is pleased to partner with ADNOC on this important, innovative, large-scale effort,” noted Omar
Alhashmi, ADPower’s executive director for asset management. “Working together, we are reinforcing Abu Dhabi’s global position as we implement this first-of-a-kind mega project that will not only create synergy between
two critical industries, but drive the Emirate’s economic growth through long-term value creation.”
A special purpose vehicle owned by ADNOC (30 percent interest), ADPower (30 percent) and a select group of developers and investors (40 percent) will fund the capital project, ADNOC stated. The state-owned
oil company also noted the project will be executed on a build, own, operate and transfer (BOOt) basis.
“The successful bidders, alongside ADNOC and ADPower, will develop and operate the transmission system, with the
full project being returned to ADNOC at the end of the transmission agreement,” ADNOC concluded.
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Week 17 29•April•2020