Petrofac Ltd announced Thursday that its Petrofac Emirates joint venture has received notice of termination from Abu Dhabi National Oil Company (ADNOC) of two recently awarded contracts for the Dalma Gas Development Project.
“Petrofac is committed to working with ADNOC over the coming weeks to explore alternative options to deliver this project in a way that supports their strategic objectives within the current challenging environment,” Petrofac said in a company statement.
“Petrofac continues to progress execution of its remaining group backlog of around $7 billion as planned and is still progressing with tendering for major contracts in Abu Dhabi. However, it anticipates this development may have an impact on the timing of their awards,” the company added.
ADNOC revealed in February that it had awarded two engineering, procurement and construction contracts, for the construction of offshore facilities for the Dalma Gas Development Project, to Petrofac Emirates and a joint venture between Petrofac and Sapura Energy Berhad.
The contracts were said to have a total value of over $1.65 billion and Petrofac Emirates’ portion of the scope of work was said to be valued at $1.5 billion.
Commenting on the awards back in February, Yaser Saeed Almazrouei, the executive director of ADNOC’s upstream directorate, said they marked another important milestone in the development of the Ghasha concession.
“It demonstrates how ADNOC is effectively collaborating with strategic partners that can deploy state-of-the-art technologies and world-class expertise to accelerate the development of Abu Dhabi’s substantial gas resources,” he said in a company statement at the time.
The Dalma project is a key part of the Ghasha ultra-sour gas concession, according to ADNOC, which says the concession is central to its strategic objective of enabling gas self-sufficiency for the United Arab Emirates.
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Petrofac, which was established in 1981, describes itself as a leading international service provider to the energy industry. ADNOC describes itself as one of the world's leading energy producers and a primary catalyst for Abu Dhabi’s growth and diversification. The business was established in 1971.
