Dalma

Dalma Gas Development Project Profile

Location and Geology

The Dalma gas field is located approximately 190 kilometers northwest of the city of Abu Dhabi, UAE, within the Arabian Basin. It is part of the Ghasha ultra-sour gas concession project, situated in the Al Dhafra region.

Ownership and Partners

The Dalma gas field is operated by Abu Dhabi National Oil Company (ADNOC), which holds a 55% stake in the Ghasha concession. The other partners include Eni (25%), Wintershall Dea (10%), OMV (5%), and Lukoil (5%) under a 40-year concession agreement that commenced in November 2018.

Project Scope and Objectives

The Dalma gas development project is a key component of the larger Ghasha concession project, aimed at enhancing the UAE's self-sufficiency in gas production. The project involves the development of several offshore fields, including Dalma, Hail, and Ghasha, among others. The overall Ghasha concession is expected to produce more than 1.5 billion cubic feet of gas per day and 120,000 barrels of oil and condensates per day upon completion.

Production and Capacity

The Dalma gas field is expected to produce around 340 million standard cubic feet per day (Mmscfd) of natural gas. The project is anticipated to start commercial production in 2025 and is forecast to peak in the same year, with production continuing until the field reaches its economic limit in 2045.

Engineering, Procurement, and Construction (EPC) Contracts

Initially, ADNOC awarded two EPC contracts valued at $1.65 billion to Petrofac and a joint venture between Petrofac and Sapura Energy in February 2020. However, these contracts were cancelled in April 2020.

In November 2021, ADNOC awarded new EPC contracts totaling $1.46 billion. Package A, valued at $514 million, was awarded to National Petroleum Construction Co. and covers the EPC of four offshore wellhead towers, pipelines, and umbilicals in the Hair Dalma, Satah, and Bu Haseer fields. Package B, valued at $950 million, was awarded to a joint venture between Técnicas Reunidas and Target Engineering and includes the EPC of gas conditioning infrastructure for gas dehydration, compression, and associated utilities on Arzanah Island.

Contractors and Service Providers

• Project Management Consultancy (PMC): KBR has a four-year PMC contract with an option to extend by two additional years, managing the EPC packages and previously involved in the front-end engineering and design (FEED) services phase.
• FEED Services: TechnipFMC was awarded a contract to conduct FEED works for the Dalma gas field in January 2018. Technip Energies also updated the FEED for the Ghasha concession.
• Artificial Islands Construction: National Marine Dredging Company (NMDC) was contracted to construct 10 new islands and two causeways, and expand an existing island, to support the drilling and production activities.
• Other Contractors: Aker Solutions, AtkinsRealis Group, Jiangsu Zhongtian Technology, Artelia Group, and KalaOra UK are also involved in various aspects of the project.

Environmental Considerations

The project involves the construction of artificial islands to protect marine life and minimize the environmental impact of the operations. These islands will eliminate the need to explore various locations for production and safeguard marine life from commercial operations.

Technological and Operational Aspects

The project will utilize smart technologies to enable remote access to project infrastructure, with a control center operating the remote facilities. The produced gas will be processed at the Habshan gas processing plant in Abu Dhabi to produce sales gas, condensate, and sulfur.

Economic and Strategic Impact

The Ghasha concession, including the Dalma gas field, is expected to meet approximately 20% of the UAE's gas demand by the second half of the 2020-2030 decade. This project is crucial for the UAE's goal of achieving self-sufficiency in gas production, reducing reliance on gas imports from Qatar and other sources.

Development Cost and Timeline

The total development cost for the Dalma Gas project is expected to be around $3.216 billion. The project is currently in the construction stage, with commercial production anticipated to start in 2025 and the contracts expected to be completed by the same year.