The $1.65 billion worth of contracts awarded to a Petrofac-led group has been terminated by ADNOC. For an ultra-sour Dalma Gas Development project in the Gulf state, ADNOC awarded the contract in February with Petrofac’s portion of the work was valued at $1.5 billion
To explore alternative options to deliver this project in a way that supports the strategic objectives within the current challenging environment, the oil service company said it is committed to working with ADNOC over the coming weeks.
Petrofac is still progressing with tendering for major contracts in Abu Dhabi and continues to progress execution of its remaining group backlog of around $7 billion as planned.
The Dalma Gas Development project was expected to be completed in 2022. ADNOC said in February that the facility is set to produce 340 million scf/d of gas. Two contracts were awarded to Petrofac-Sapura Energy of Malaysia JV and UK-based Petrofac.
