Petrofac Limited (LSE:PFC) has won a US$615 million carbon capture contract from the Abu Dhabi National Oil Company (ADNOC).
The engineering, procurement and construction contract is its second with the UAE state oil company in just over three months, having previously been suspended from bidding for tenders due to misconduct issues.
ADNOC said the Habshan Carbon Capture, Utilisation and Storage (CCUS), which it expects to be commissioned in 2026, is one of the largest carbon capture developments in the region.
Petrofac Emirates has been engaged to deliver carbon capture units, pipeline infrastructure and a network of wells for carbon dioxide (CO2) recovery and injection, with ADNOC aiming to capture and permanently store 1.5 million tons per annum of CO2 deep underground as part of its decarbonisation efforts.
CO2 will be injected and placed for permanent storage in the Bab Far North oil field, located approximately 150 miles southwest of Abu Dhabi.
The UK company was reinstated last year onto ADNOC's list of approved potential suppliers following a UK Serious Fraud Office bribery probe that led to ADNOC withdrawing a US$1.65 billion contract in 2020.
ADNOC said the Habshan CCUS project “could support enhanced oil recovery of low carbon-intensity barrels and the production of low-carbon feedstocks such as hydrogen, to help customers decarbonise their operations”.
It predicted that more than 65% of the contract value will flow back into the UAE economy.
Petrofac said the contract is valued at more than US$600 million, while ADNOC announced that it was US$615 million (2.26 billion UAE dirham).