Gulf Construction Online - NMDC wins $1.36bn Abu Dhabi island deal

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A map of the Ghasha Concession showing the Hail, Ghasha and Dalma islands.

NMDC wins $1.36bn Abu Dhabi island deal

01 March 2019

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 emirate.

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. 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.

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, says Adnoc.

At peak construction, the project is expected to employ over 3,500 people, it adds. 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,” remarks Abdulmunim Al Kindy, the upstream executive director at Adnoc.

Al Kindy points out that NMDC had 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,” notes the top official.

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.