ADNOC Logistics & Services (ADNOC L&S) has won a $975m contract from ADNOC Offshore for the engineering, procurement and construction of an artificial island for the Lower Zakum offshore field.
The first major deal for ADNOC L&S after it was listed on the Abu Dhabi Securities Exchange this month, includes dredging, land reclamation and marine construction.
The award is part of Lower Zakum’s long-term development plan, aiming to safely and sustainably unlock greater value while helping to meet the increasing global energy demand.
ADNOC Offshore said it has extensive experience in deploying the artificial island concept for project delivery, resulting in significant cost savings and environmental benefits compared to conventional approaches that require more offshore installations and infrastructure.
Commenting on the contract, Captain Abdulkareem Al Masabi, CEO of ADNOC L&S, said: “This contract award for the construction of artificial island ‘G’ exemplifies our strategy to tap into new growth areas, showcasing the expanding range of services we offer to our customers and the trust that ADNOC Offshore has placed in us as their partner of choice.”
With a diverse fleet of 245 vessels and approximately 540 vessels operated and chartered annually, ADNOC L&S said it is targeting an average annual EBITDA growth in the low teens over the medium term. “This growth will be driven by new contract awards, further expansion of its integrated logistics services platform, and optimised redeployment of jackup barges.”
