The Abu Dhabi National Oil Company (ADNOC) awarded both Front End Engineering Design (FEED) agreements for ADNOC's planned offshore ultra-sour gas mega project, which contains the Hailstorm, Ghasha and Dalma areas. Bechtel (UK) was awarded Hail & Ghasha FEED Contract and TechnipFMC (UAE) was awarded Dalma FEED Agreement.

In man-hours, the two FEED agreements, jointly, are the largest granted by an oil and gas company, underpinning the criticality of a comprehensive FEED stage to optimize project cost and routine. The project, in the northwest overseas area of the Emirate of Abu Dhabi, could meet 20 percent of the UAE's gas demand by the 2nd half of the next years.

H.E. Dr. Sultan Ahmed Al Jaber, UAE Minister of State and ADNOC Group CEO, said: "The development in energy demand in Abu Dhabi, and the wider UAE, has prompted ADNOC to further harness its gas sources, as part of its 2030 smart growth method. This FEED award offers ADNOC with the potential to open added undeveloped sour gas reserves and will permit us to provide versus our tactical objective to make sure a lasting and economic supply of gas."

Along with awarding the FEED agreements, ADNOC is near to awarding 5 technology licensor agreements, covering a gas therapy licensor; a sulphur recovery unit (SRU) licensor; a gas fluids (NGL) licensor; a condensates recovery (hydro treaters) licensor and a hydrogen generation licensor. These technologies are vital to the successful implementation of the FEED phase.

Abdulmunim Saif Al Kindy, Director of ADNOC's Upstream business, said: "The choice to award both FEED contracts followed a strenuous and extremely competitive tendering process, ensuring we will purely manage costs by collaborating with contractors that can release effective engineering and robust value-add modern technologies. In progressing with these tasks, we produce the potential to capitalize on our success and experience in ultra-sour gas production, acquired from the development of the Shah field, the largest project of its kind world."

From the beginning of the FEED phase, ADNOC will certainly execute, for the very first time, an integrated project delivery (IPD) technique. This will certainly enable it to reduce the project's development timetable and cost by integrating and entailing all relevant stakeholders. Relevant stakeholders are potential EPC bidders, major suppliers and governmental bodies, that are important to enhance design top quality, recognize unpredictabilities and enhance the precision of needed engineering work.

As part of ADNOC's selection criteria for the FEED industrial examination process, the company carefully took into consideration the level to which prospective buyers would aid to drive in-country value (ICV) for the UAE. By integrating ICV standards into ADNOC's total commercial evaluation process, the company is supplying on its new in-country worth technique, targeted at supporting new local and worldwide collaborations and chances, catalysing socio-economic development, boosting knowledge transfer, and developing job opportunities for UAE nationals.

The Hail, Gasha and Dalma project take advantage of Abu Dhabi's Arab formation, which is estimated to hold multiple trillions of cubic feet of recoverable gas and from which the project is expected to produce more than one billion cubic feet of gas per day (cfd), enough gas to give power to two million homes.

The awarding of FEED contracts adheres to the awarding of the Project Monitoring Consultancy and artificial islands Design and Survey Agreements to Artelia and KBR, previously Kellogg Brown and Root.