Abu Dhabi National Oil Company (ADNOC) awarded Petrofac Emirates LLC and Sapura Energy two engineering, procurement, and construction (EPC) contracts worth $1.65 billion for the construction of the Dalma Gas Development Project offshore facilities in Abu Dhabi city, the company announced in a statement.

The construction is expected to be completed in 2022 and will enable the Dalma Gas Development project to produce around 340 million standard cubic feet per day (mmscf/d) of natural gas.

According to the statement, 70% of the contracts’ total value will flow into the UAE’s economy under ADNOC’s In-Country Value (ICV) program, reinforcing its commitment to maximize value for the UAE and enable it to deliver its 2030 strategy.

Yaser Saeed Almazrouei, Executive Director of ADNOC’s Upstream Directorate, said that “[the award] 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.”

For his part, George Salibi, Petrofac’s Engineering & Construction COO, said that “We are fully committed to supporting continued and sustainable investment in Abu Dhabi’s oil and gas industry through our strategic focus on maximising local delivery and are pleased that our approach will generate substantial In-Country Value for the local economy.”

Tan Sri Shahril Shamsuddin, President and Group CEO of Sapura Energy, said that “We are committed to delivering the Dalma Gas Development Project with our hallmark technical capabilities in offshore engineering and construction. Our priority is to support ADNOC in unlocking value from their asset.”

Dalma Project is located about 190 kilometers northwest of Abu Dhabi city and is a key part of the Ghasha ultra-sour gas concession, which is central to ADNOC’s strategic objective of enabling gas self-sufficiency for the United Arab Emirates (UAE).