ADNOC has notified the Petrofac Emirates joint venture of the termination of two recently awarded contracts for the Dalma gas development, 140 km (87 mi) offshore Abu Dhabi’s northwest coast.
Read More: ADNOC Cancels $1.65B Dalma Gas Contracts
Petrofac said it is committed to working with ADNOC over the next few weeks on alternative options for delivering the project to suit ADNOC’s needs in the current challenging environment.
The contracts were awarded in February, with Petrofac Emirates' scope of work valued at $1.5 billion.
Read More: Huge contract by Adnoc to Expand World’s Largest 3d Seismic Survey
One, a 33-month lump-sum contract, covered gas processing facilities at Arzanah island. The work scope included inlet facilities with gas processing and compression units, power generation units, utilities and associated infrastructure.
For the second package, a joint venture with SapuraKencana, was a 30-month lump-sum contract covering three new wellhead platforms, removal and replacement of an existing topsides, new pipelines, subsea umbilicals, composite and fiber-optic cables.
Dalma is part of the Ghasha ultra-sour gas concession, said to be central to ADNOC’s objective of gas self-sufficiency for the UAE.
Petrofac added that it was continuing to tender for major contracts in Abu Dhabi, although this development may impact timing of any awards.
Moreover, The United Arab Emirates awarded oil-exploration rights to Occidental Petroleum Corp., moving quickly to expand output capacity just a week after the country clashed with its OPEC partners over production limits.
Houston-based Occidental is set to invest as much as $140 million in the new area, known as Onshore Block 5, during the exploration phase, the duration of which wasn’t disclosed.
Abu Dhabi is the UAE’s capital and largest emirate, and its fields produce almost all of the country’s oil. The Supreme Petroleum Council, which sets Abu Dhabi’s energy policy, last month approved a $122 billion budget to help ADNOC boost production capacity by a fourth to 5 million barrels a day by 2030.
