The Abu Dhabi National Oil Co. (ADNOC) announced Feb. 6 the award of a dredging, land reclamation and marine construction contract to build multiple artificial islands in the first phase of development of the Ghasha Concession.

The contract awarded to the UAE’s National Marine Dredging Co. (NMDC) is valued at AED 5 billion (US$1.36 billion) and will achieve substantial In-Country Value of over 70%. The Ghasha Concession consists of the Hail, Ghasha, Dalma, Nasr and Mubarraz offshore sour gas fields.

Under the terms of the contract, NMDC will construct 10 new artificial islands and two causeways, as well as expand an existing island, Al Ghaf. The project is expected to take 38 months to complete and will provide the infrastructure required to further develop, drill and produce gas from the sour gas fields in the Ghasha Concession. At peak construction, the project is expected to employ over 3,500 people.

The award was signed by Abdulmunim Al Kindy, ADNOC upstream executive director, and Yasser Zaghloul, NMDC CEO, and was witnessed by UAE Minister of State and ADNOC Group CEO, His Excellency Dr. Sultan Ahmed Al Jaber, and His Excellency Mohammed Thani Murshed Al Rumaithi, Chairman of NMDC. 

“This award accelerates the development of the Hail, Ghasha and Dalma sour gas offshore mega-project, which is an integral part of ADNOC’s 2030 smart growth strategy. As one of the world’s largest sour gas projects it will make a significant contribution to the UAE’s objective to become gas self-sufficient and transition to a potential net gas exporter,” H.E. Dr. Al Jaber said.

ADNOC recently awarded stakes in the Ghasha Concession to Italy’s Eni (25%), Germany’s Wintershall (10%) and Austria’s OMV (5%). The mega-project is expected to produce over 1.5 billion cubic feet of gas per day when it comes on stream around the middle of the next decade, enough to provide electricity to more than two million homes. In addition, more than 120,000 barrels per day of oil and high-value condensates are expected to be produced.