Petrofac Wins $600m Contract with UAE Oil Giant ADNOC
- ADNOC has awarded the London-based energy services business a $600m deal
- The Habshan CCUS project is approximately 93 miles southwest of Abu Dhabi
- Petrofac will supply carbon capture units, pipeline infrastructure, and wells
Petrofac has secured a $600 million contract from Abu Dhabi National Oil Company (ADNOC) to provide equipment for a major carbon capture project in the Middle East. The London-based energy services business will supply carbon capture units, pipeline infrastructure, and sequestration wells to the Habshan Carbon Capture, Utilisation and Storage (CCUS) project, located approximately 93 miles southwest of Abu Dhabi.
Contract: Petrofac has won a $600million deal to supply carbon capture units, pipeline infrastructure, and sequestration wells to a major Middle Eastern carbon capture project
This is the second major contract Petrofac has won from ADNOC in 2023, following a £555 million deal in June for construction work on a new gas compressor plant. Petrofac also secured contracts from ADNOC last year for brownfield work and field maintenance services at the Haliba oil field.
The contract coincides with the ADIPEC conference in Abu Dhabi and precedes the COP28 climate summit in Dubai by two months. ADNOC aims to achieve net zero emissions from its operations by 2045, and the Habshan project is expected to store up to 1.5 million tonnes of CO2 underground annually.
Tareq Kawash, CEO of Petrofac, expressed excitement about supporting ADNOC’s decarbonisation plans and the UAE’s energy transition.
Petrofac shares dropped 0.7% to 72.35p following the announcement. The company has faced challenges in the Middle East due to a bribery scandal involving senior executives, which led to a temporary ban on applying for ADNOC contracts. Although Petrofac has accumulated a significant backlog of work, it continues to struggle with sales and profitability.
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