Petrofac and ADNOC: A Strategic Partnership to Elevate Gas Production on Das Island

In the ever-evolving landscape of the global energy sector, strategic partnerships play a pivotal role in ensuring sustainable growth and operational efficiency. Recently, Petrofac, a leading international service provider to the energy industry, has secured a significant contract with ADNOC Gas, marking a monumental step in the expansion of gas production facilities on Das Island. This collaboration, valued at an impressive US$1.2 billion, will encompass Engineering, Procurement, and Construction Management Services (EPCM) as part of the overall Rich Gas Development (RGD) Programme. This blog post delves into the implications of this partnership and the anticipated benefits for the energy sector in the United Arab Emirates (UAE).

Understanding the Scope of the Project

Petrofac's role in this ambitious project includes the provision of EPCM services and the oversight of procurement and construction contracts aimed at building a new inlet facility. Additionally, the project entails the installation of two new gas dehydration and compression trains, each boasting a capacity of 420 million standard cubic feet per day (MMSCFD), alongside associated infrastructure upgrades. Furthermore, Petrofac will enhance existing facilities to bolster the site's capacity for collecting and transporting raw natural gas. These enhancements are crucial, as they are designed to significantly elevate gas processing capabilities to meet the escalating customer demands in the region.

The strategic importance of Das Island cannot be overstated. Located 160 kilometers north-west of mainland UAE, the facility has been operational since 1977, making it the third-longest LNG operation still in production worldwide. With a liquefaction capacity of six million metric tons per annum (MMtpa), Das Island serves as a cornerstone of the UAE’s LNG export strategy. Hence, Petrofac's involvement in this project signifies a substantial commitment to maintaining and expanding the UAE's energy capabilities.

Commitment to Sustainability and Efficiency

Petrofac's Group Chief Executive, Tareq Kawash, expressed enthusiasm regarding this partnership, stating, “We are delighted to have been entrusted by ADNOC Gas, one of our longest-standing customers, to undertake this contract in our home market of the UAE.” This sentiment reflects the deep-rooted relationship between Petrofac and ADNOC, which has evolved over years of collaboration. The trust exhibited by ADNOC in Petrofac's capabilities highlights the latter's commitment to delivering high-quality and predictable results.

Moreover, the Chief Operating Officer of Petrofac’s Engineering & Construction division, Elie Lahoud, emphasized the importance of this project in supporting ADNOC Gas’s major offshore asset development. He articulated, “Through our long-standing partnership, we have demonstrated our commitment to predictable, high-quality delivery and look forward to contributing further to ADNOC’s support of the UAE’s energy goals.” This commitment is critical in an industry where operational excellence and sustainability are paramount.

Furthermore, the upgrades to the gas processing facilities will not only enhance production but will also align with the UAE’s broader energy goals. The focus on sustainable practices and efficient resource utilization reflects a growing global trend toward environmentally conscious energy production. As the demand for natural gas continues to rise, the enhancements made to the Das Island facility will play a vital role in ensuring that the UAE remains competitive in the international energy market.

A Vision for the Future

The partnership between Petrofac and ADNOC Gas represents a significant milestone in the UAE's energy landscape. As the country navigates the complexities of a dynamic global market, strategic collaborations such as this one will be essential in fostering innovation and enhancing operational efficiency. The expansion of gas production facilities on Das Island not only underscores the importance of sustainable energy practices but also highlights the commitment of both organizations to meeting the growing demands of their customers.

As Petrofac embarks on this ambitious project, the energy industry will undoubtedly witness a positive transformation in gas processing capabilities. The successful execution of this EPCM contract will pave the way for further advancements in the sector, ensuring that the UAE continues to thrive as a key player in the global energy arena.

Harnessing Innovation: Wood's Commitment to Decarbonisation in Iraq

In an era characterized by urgent climate action and sustainable practices, the energy sector plays a pivotal role in shaping a greener future. Recently, Wood, a global leader in consulting and engineering, has underscored its commitment to this cause by securing a series of decarbonisation contracts valued at approximately $100 million. These contracts focus on flare gas reduction and carbon efficiency project solutions within Iraq's largest oil fields. This strategic move not only highlights Wood's dedication to environmental stewardship but also reinforces Iraq's ambitious goal of reducing gas flaring by a remarkable 78% by the end of 2025.

A Legacy of Excellence in Decarbonisation

Wood's extensive experience in providing decarbonisation solutions is a testament to its capability and leadership in the energy sector. Over the decades, the company has partnered with major operators in Iraq, successfully implementing the country’s largest flare gas reduction programme to date. This track record positions Wood as a trusted partner in achieving significant environmental improvements while also enhancing operational efficiency.

In this context, the recent contracts encompass a comprehensive suite of services including brownfield engineering, procurement, and construction (EPC) modifications. These solutions aim to bolster operational efficiency while minimizing environmental impacts. The focus on brownfield projects is particularly noteworthy; it emphasizes the need to enhance existing infrastructures rather than solely relying on new developments. By leveraging its deep-rooted understanding of Iraq’s energy landscape, Wood is poised to drive substantial progress towards sustainable energy practices.

Collaborative Efforts Towards a Sustainable Future

Wood's President of Operations for Europe, the Middle East, and Africa, Ellis Renforth, articulated the company's vision succinctly: “We are working in partnership with our clients to achieve Iraq’s energy ambitions and deliver a sustainable energy future for the country.” This statement encapsulates the essence of Wood’s approach—collaboration. By fostering partnerships with local and international stakeholders, Wood aims to align its objectives with those of its clients, ensuring that every project contributes meaningfully to the overarching goal of sustainability.

Moreover, the significance of local knowledge cannot be overstated. Wood Iraq's extensive familiarity with its clients' infrastructure and operational goals enables the company to tailor its strategies effectively. This nuanced understanding facilitates not only the improvement of operational efficiency but also the reduction of gas flaring—a critical step in mitigating environmental degradation. As the world grapples with the challenges posed by climate change, initiatives like these stand out as beacons of hope.

Expanding Workforce for Enhanced Project Delivery

The scope of the newly awarded contracts extends beyond technical solutions; it also encompasses job creation. Wood plans to recruit 60 new employees to support the successful delivery of these projects. This initiative not only reflects Wood’s commitment to enhancing local expertise but also contributes to economic growth within Iraq. By investing in human capital, Wood fosters a sustainable workforce equipped to tackle the challenges of decarbonisation.

Furthermore, this recruitment drive signifies a multi-faceted approach to project execution. By assembling a team that understands the local context, Wood enhances its ability to implement solutions that resonate with both environmental and economic imperatives. The infusion of new talent into the workforce promises to invigorate the company's operations while ensuring the highest standards of project delivery.

A Vision for the Future

As Wood embarks on this ambitious journey of decarbonisation in Iraq, the implications extend far beyond the immediate projects. The contracts serve as a catalyst for broader discussions about the future of energy in the region. With Iraq's commitment to reducing gas flaring by 78% by the end of 2025, Wood's involvement signifies a significant step toward achieving this goal.

Wood's recent contracts for flare gas reduction and carbon efficiency project solutions exemplify a commitment to sustainable energy practices in Iraq. Through collaboration, local expertise, and a focus on innovation, Wood is not only enhancing operational efficiency but also contributing to a greener future. As the energy landscape continues to evolve, initiatives like these will play a crucial role in shaping a more sustainable world.