RIYADH: An artificial island is set to be built at the Lower Zakum oil fields in the UAE after Abu Dhabi National Oil Co. Offshore awarded a $975 million contract to its sister company ADNOC Logistics & Services.
The project involves dredging, land reclamation and marine construction for an artificial island at the oil fields near Abu Dhabi, according to a statement released by the shipping and integrated logistics company on Thursday.
“Capitalizing on our project management expertise, end-to-end logistics solutions and strategic partnerships, ADNOC L&S is primed to execute major offshore engineering, procurement and construction contracts,” said Abdulkareem Al-Masabi, CEO of ADNOC L&S.
This project represents ADNOC L&S’s first significant contract since its $769 million initial public offering on June 1 on the Abu Dhabi Securities Exchange.
The company stated that at least 75 percent of the total contract value would circulate into the UAE economy.
“The engineering, procurement and construction market is expected to experience substantial growth in the region in the coming years. The company aims to offer a broader range of services to its customers while facilitating the growth of ADNOC’s upstream and downstream operations,” said a press release.
The contract is a part of the long-term development plan for Lower Zakum, which aims to safely and sustainably unlock greater value while addressing the increasing global energy demand.
The initial phase of the plan, an island-based concept, is designed to escalate Lower Zakum’s output from around 425,000 barrels of oil per day to 520,000.
This effort aligns with the country’s objective to enhance its total production capacity to 5 million bpd by 2027.
“This contract award for the construction of the artificial island exemplifies our strategy to tap into new growth areas, showcasing the expanding range of services we offer to our customers and the trust that ADNOC Offshore has placed in us as their partner of choice,” Al-Masabi said.
Based in Abu Dhabi, ADNOC L&S is an energy maritime logistics company and a subsidiary of the state-owned diversified energy and petrochemicals group, ADNOC.