Petrofac announced on Friday that ADNOC has awarded the company a $700 million engineering, procurement and construction project.
In a statement published on its website, Petrofac said it has been selected by ADNOC subsidiary ADNOC Gas Processing to undertake a “major” new EPC project at ADNOC’s Habshan Complex.
The contract, awarded to Petrofac Emirates, includes the engineering, procurement and construction of a new gas compressor plant, Petrofac revealed. The new plant will include three gas compressor trains, associated utilities and electrical systems and will support ADNOC to “substantially” increase gas production from the Habshan Complex, Petrofac noted.
“We are delighted to have been selected by ADNOC, one of Petrofac’s longest-standing customers, to undertake this important new EPC project in our home market of the United Arab Emirates,” Tareq Kawash, group chief executive of Petrofac, said in a company statement.
“We look forward to working together with ADNOC to safely and sustainably develop this critical energy resource,” he added.
Elie Lahoud, Petrofac’s director of engineering and construction operations, said: “Petrofac has a long and strong track record of supporting ADNOC in the UAE, rooted in our strong commitment to maximize local delivery, invest in the local supply chain and develop local equipment”.
“This focus on in-country value will again underpin our ADNOC delivery approach to the strategically important Habshan complex,” added Lahoud.
At the time of writing, neither ADNOC nor ADNOC Gas have made any mention of the Petrofac deal in the news section of their websites.
On its site, ADNOC Gas noted that gas processing provides the engine of its operations, “with the Habshan complex at its heart.”
“Onshore, we operate one of the largest gas processing plants in the world, the five plants of the vast Habshan Complex with its 14 processing trains and a capacity of 6.1 bscfd,” the company states on its site.
Delay of Petrofac
In a business update posted on its site earlier this week, Petrofac announced that the group’s portfolio was expected to “significantly increase” to approximately $5.6 billion by June 30, 2023, “reflecting strong order intake in both engineering and construction (E&C) and assets.Solutions”.
In the update, Petrofac pegged its E&C order book at $3.5 billion and its asset solutions backlog at $2.1 billion as of June 30. The group’s order book as of December 31, 2022 was $3.4 billion, according to the update, which showed that the E&C Money backlog accounted for $1.6 billion of that total and the Solutions backlog ‘assets represented 1.8 billion dollars of the total.
“In the first six months of the year, we have announced more than $3.5 billion in new work in E&C and Asset Solutions, both in the traditional and new energy sectors, and we continue to pursue a strong portfolio of future opportunities in core geographies.” Kawash said in the update.
“By further advancing our plans to strengthen the group’s financial position by unlocking the working capital built up through the pandemic and building on the momentum from the significant awards won in the first half, we are focused on delivering on Petrofac’s potential,” he said. added
“We have an outstanding EPC and operations capability that is well positioned to deliver and support critical energy infrastructure for the world’s leading resource owners,” Kawash said.
Offer of 1.5 million dollars to Algeria
Earlier this month, Petrofac announced that it had reached a definitive agreement with Step Polymers SPA, a subsidiary of Sonatrach, for the design and construction of its petrochemical complex in the Arzew industrial zone in Algeria.
In a statement posted on its site, Petrofac said it will deliver the $1.5 billion project with its joint venture partner China Huanqiu Contracting & Engineering Corporation (HQC), noting that Petrofac’s share is valued at more than 1,000 millions of dollars.
“Expanding Petrofac’s portfolio within the petrochemical sector, this contract builds on our 25-year track record of safely delivering strategically important energy infrastructure in Algeria, while developing the local workforce,” said Kawash in a statement from the company at the beginning of June.
Last month, Petrofac announced that a joint venture led by Petrofac had been notified of a conditional award by STEP Polymers SPA for a petrochemical engineering, procurement and construction contract valued at approximately $1.5 billion.
In a statement posted on its site in May, Petrofac said that “this is a major downstream project, which will form part of the Arzew industrial zone, located west of Algiers, supporting the strategy energy of Algeria”.
The contract covers the design and construction of two large integrated processing units and includes the delivery of a new propane dehydrogenation unit and a polypropylene production unit, as well as associated services and infrastructure for the site, Petrofac noted in his May statement. The asset is expected to produce 550,000 tonnes of polypropylene a year, Petrofac revealed last month.
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