Abu Dhabi National Oil Company (Adnoc) has dished out a trio of onshore engineering, procurement and construction deals to two leading domestic contracting players, as it aims to optimise operations at some of its oilfields in the emirate.

Subsidiary Adnoc Onshore has awarded three contracts to Robt Stone and Galfar Engineering & Contracting that are together valued at $324 million, Adnoc said on Monday.

“The three contracts will see the procurement and construction (PC) of flowlines and wellhead installations across several onshore oilfields in the emirate of Abu Dhabi,” it said.

Adnoc said the contracts also include “the EPC of a new bypass system to provide critical backup for the existing crude receiving stations at the Jebel Dhanna and Fujairah export terminals".

The new EPC deals highlight the operator’s intent to ramp up its contracting activity, in line with its 2030 growth strategy, despite the current oil market headwinds.

The Emirati giant last month awarded two EPC contracts together worth $245 million to China Petroleum Pipeline Engineering Company and Abu Dhabi-based Target Engineering Construction, in what has otherwise been a lacklustre year for the UAE contracting industry.

The two awards earlier announced by Adnoc were among the first oil and gas development projects awarded by the Abu Dhabi giant this year, as the coronavirus outbreak and sustained low oil prices had dented market sentiment and slowed down oil and gas projects in the region.

Onshore assets in focus

The contracts for Robt Stone and Galfar relate to work on Asab, Sahil and Bab oilfields.

The first two procurement and construction deals for flowlines and wellheads are split into two parts.

The first contract — valued at $71 million — has been awarded to Galfar to procure and construct flowlines and wellhead installations for Asab and Sahil.

The second contract — valued at $168 million — has been awarded to Robt Stone and is for procurement and construction of flowlines and wellhead installations for Bab.

Adnoc said both contracts are expected to be completed in five years, and their scope includes work on “natural oil producer wells and water injection wells at the respective fields".

The third EPC contract awarded to Galfar is valued at $84 million and “will create a new bypass system to provide critical backup for Adnoc Onshore’s existing crude receiving stations at the Jebel Dhanna and Fujairah export terminals,” Adnoc said.

The project is expected to be completed in 30 months, the company added.

Production

Adnoc awards trio of onshore contracts worth $324 million