Managing offshore risk in the Middle East

ADNOC cancels contracts for the Dalma gas development project

Apr 19, 2020
1 min read
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Petrofac announced that its Petrofac Emirates joint venture with Sapura Energy has received notice of termination from Abu Dhabi National Oil Company (ADNOC) of two recently awarded contracts for the Dalma Gas Development Project.

The Dalma project, located about 190 kilometers northwest of Abu Dhabi city, is a key part of the Ghasha ultra-sour gas concession.

The project, worth around US$1.65 billion, was awarded in February 2020, comprised two packages.  Petrofac Emirates’ portion of the scope of work is valued at US$1.5billion.

The two EPC contracts were going to enable the Dalma Gas Development project to produce around 340 million standard cubic feet per day (mmscfd) of natural gas.

Petrofac said in a statement that it is committed to working with ADNOC over the coming weeks to explore alternative options to deliver this project in a way that supports their strategic objectives within the current challenging environment.