Abu Dhabi, September 2024 — The Abu Dhabi National Oil Company (ADNOC) has awarded a $548 million contract to the National Petroleum Construction Company (NPCC) to build a new subsea pipeline at the Lower Zakum field. The project is a key part of ADNOC’s strategy to boost gas production and achieve self-sufficiency in the United Arab Emirates (UAE).
The new pipeline, spanning 85 kilometers, will transport associated gas from the Zakum West Super Complex to Das Island. The development is expected to increase the Lower Zakum field’s gas production capacity from 430 million to 700 million standard cubic feet per day (MMscf/d) by 2025. This increase will support ADNOC’s integrated gas master plan, which aims to meet rising domestic energy demand and contribute to global energy supply(PGJOnline)(S&P Global).
The project will also stimulate the local economy, with over 75% of the contract’s value expected to flow back into the UAE through ADNOC’s In-Country Value (ICV) program. The ICV initiative is designed to encourage local economic growth and create job opportunities, especially for UAE nationals(PGJOnline).
This contract is part of ADNOC’s broader investment in offshore operations. Recent weeks have seen the company commit more than $5 billion to expand its offshore capabilities, including contracts for drilling and logistics services(PGJOnline).
The development of the Lower Zakum field is critical to ADNOC’s goal of achieving gas self-sufficiency while supporting industrial growth and meeting global energy demands as the world transitions to cleaner fuels.
