NMDC wins US$ 1.36 bn contract for Phase 1 development of Ghasha Concession

Posted on 6th February 2019

NMDC wins US$ 1.36 bn contract for Phase 1 development of Ghasha Concession
Image courtesy of: http://tradearabia.com/source/2019/02/06/island.jpg

According to *Tradearabia news report, UAE-based National Marine Dredging Company (NMDC) has been awarded a major contract by Abu Dhabi National Oil Company (Adnoc) to provide dredging, land reclamation and marine construction services contract for the first phase of development of the Ghasha Concession in the UAE capital.

Under the terms of the contract, NMDC will construct 10 new artificial islands and two causeways, as well as expand an existing island, Al Ghaf, said a statement from Adnoc.

The project is expected to take 38 months to complete and will provide the infrastructure required to further develop, drill and produce gas from the sour gas fields in the Ghasha Concession, it stated.

The Ghasha Concession consists of the Hail, Ghasha, Dalma, Nasr and Mubarraz offshore sour gas fields.

The contract, valued at Dh5 billion ($1.36 billion) comes as part of the construction of multiple artificial islands in the first phase of Ghasha Concession development, said the statement from Adnoc.

At peak construction, the project is expected to employ over 3,500 people, it added.

Through this contract win, NMDC will achieve substantial In-Country Value of over 70 per cent.

"This award accelerates the development of the Hail, Ghasha and Dalma sour gas offshore mega-project, which is an integral part of Adnoc’s 2030 smart growth strategy," remarked Abdulmunim Al Kindy, the upstream executive director at Adnoc after signing the agreement with Yasser Zaghloul, the chief executive of NMDC in the presence of Dr Sultan Ahmad Al Jaber, Minister of State and Adnoc Group CEO and Mohammed Thani Murshed Al Rumaithi, the chairman of NMDC.

As one of the world’s largest sour gas projects it will make a significant contribution to the UAE’s objective to become gas self-sufficient and transition to a potential net gas exporter, he stated.

Al Kindly pointed out that NMDC haad been selected after a rigorous and competitive tender process.

"The award of this project to a UAE company will generate substantial in-country value, supporting local economic growth. In addition, it demonstrates the rapid progress Adnoc is making to leverage and create value from Abu Dhabi’s substantial, untapped, hydrocarbon resources," noted the top official.

As part of the selection criteria for the contract, Adnoc carefully considered the extent to which bidders would maximise In-Country Value in the delivery of the project.

This is a mechanism integrated with the Abu Dhabi group's tender evaluation process, aimed at nurturing new local and international partnerships and business opportunities, catalyzing socio-economic growth and creating job opportunities for UAE nationals, stated Al Kindly.

The successful bid by NMDC prioritised UAE sources for materials, as well as the use of mostly local suppliers, manufacturers and workforce, resulting in a total local spend of over Dh3.62 billion ($1 billion). NMDC will also work with international partners to deliver the project.

On the win, Al Rumaithi said: "We are proud of our partnership with Adnoc and to be awarded this exciting new mega-project. We are also very pleased at the contribution this project will make to the local UAE economy, to supporting Adnoc’s gas developments, and to progressing the UAE's strategy to develop the maritime sector, in order to compete globally."

"Enhancing in-country value is an important part of our work plan in the National Marine Dredging Company, as it is for Adnoc. We will achieve this by spending almost $1 billion of the contract award in the UAE and creating additional employment opportunities for citizens in the maritime sector," stated Al Rumaithi.

"We aim to increase the use of local resources, such as products, facilities and infrastructure in this sector of dredging equipment and services. NDMC will contribute to supporting the development and prosperity of the UAE," he added.

*News source: http://tradearabia.com/news/CO...

Related project: Hail and Ghasha Sour Gas Development - Reclamation Works

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