KBR awarded project management contract for gas venture for LNG exporter Abu Dhabi

Tuesday, 11 February 2020
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LNG Journal editor

KBR, the US engineering and LNG contractor, was awarded a major project management consultancy services contract for the Ghasha portfolio of gas projects by Abu Dhabi National Oil Company in the United Arab Emirates, the oldest LNG producer in the Middle East.

The Ghasha mega-project for sour gas is located on the northwest shore of Abu Dhabi and Adnoc is developing the project, estimated to have a daily production capacity of around 1 billion cubic feet of gas.

Potential

The Ghasha production has the potential to meet about 20 percent of the UAE's gas demand by around the second half of the decade.

In addition, more than 120,000 barrels per day of oil and high-value condensates are expected to be produced when the project is on stream.

The Ghasha concession has a validity of 40 years and comprises three gas and condensate fields: Hail, Ghasha and Dalma.

Under the terms of the KBR contract, the Houston-based company will act as the main PMC contractor responsible for managing the successful engineering, procurement and construction (EPC) contractors for packages A & B of the Dalma Gas Development Project, Packages 1-5 of the Hail & Ghasha Development Project, the Hail & Ghasha Islands Project as well as the Deep Gas Project.

“This work is expected to be performed over four years with an optional extension for two more years,” said KBR, whose other main contract in the Arab Gulf region is at Oman LNG.

The UAE region also holds the oil, gas and condensate fields Nasr, Sarb and Mubarraz.

Adnoc has a 60 percent stake in the concession. The second-largest shareholder is Italian energy company Eni with 25 percent.

“We deeply appreciate the tremendous amount of trust that Adnoc has placed in KBR to project-manage such a significant share of this strategic concession program,” said Stuart Bradie, KBR President and Chief Executive.

“This award highlights Adnoc’s confidence in KBR's reputation as the industry leader in the provision of value-added PMC services for similar mega gas-field development projects,” added Bradie.

“We look forward to continuing our long-term relationship with Adnoc and to demonstrating once again our world-class ability to manage large-scale, complex projects such as this on time, within budget, but most of all with a strict safety culture,” stated Bradie.

“We are confident that the Ghasha concession project will significantly boost in-country value. As always, KBR remains fully committed to act as one of Adnoc’s strategic partners to achieve the targeted objectives,” he said.

Adnoc’s growth strategy focuses on unlocking and extracting maximum value from the available gas reserves in Abu Dhabi.

It also aims to achieve gas self-sufficiency and transform the nation into a net exporter of gas.

Adnoc proposes to create an ultra-sour gas hub in the region with the addition of Ghasha concession fields to the existing Shah Arab reservoir.

The UAE is the oldest LNG producer in the Middle East from its Das Island plant offshore Abu Dhabi consisting of three Trains with capacity of around 5.5 million tonnes of LNG per annum.

Adnoc recently confirmed new discoveries of gas in place totaling 15 trillion cubic feet and intends to continue LNG production for 40 more years and to increase its discovered resources.

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