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ADNOC Awards $975 Mln Contract to Develop Offshore Field in UAE

The project involves dredging, land reclamation, and marine construction for artificial island G at the Lower Zakum field offshore. (Asharq Al-Awsat)
The project involves dredging, land reclamation, and marine construction for artificial island G at the Lower Zakum field offshore. (Asharq Al-Awsat)
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ADNOC Awards $975 Mln Contract to Develop Offshore Field in UAE

The project involves dredging, land reclamation, and marine construction for artificial island G at the Lower Zakum field offshore. (Asharq Al-Awsat)
The project involves dredging, land reclamation, and marine construction for artificial island G at the Lower Zakum field offshore. (Asharq Al-Awsat)

UAE’s ADNOC Offshore has awarded a 3.588 billion dirhams ($975 million) artificial island construction contract to ADNOC Logistics & Services (ADNOC L&S).

The project involves dredging, land reclamation, and marine construction for artificial island G at the Lower Zakum field offshore.

ADNOC L&S is primed to execute major offshore engineering, procurement, and construction contracts. “The EPC market is expected to experience substantial growth in the region in the coming years,” the company said.

The company offers a range of services to its customers while facilitating the growth of ADNOC Group’s upstream and downstream operations.

This is the maritime logistics company’s first major contract after being listed on the Abu Dhabi Securities Exchange last week.

“This contract award for the construction of the artificial island 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,” Abdulkareem Al-Masabi, CEO of ADNOC L&S said.

The contract is part of Lower Zakum’s long-term development plan that seeks to unlock greater value while helping to meet the increasing global energy demand safely and sustainably.

ADNOC Offshore 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.

The company has a fleet of 245 vessels and manages around 540 ships annually, in addition to its 1.5 million-square-meter integrated logistics base in Abu Dhabi.

ADNOC L&S expects growth of average annual earnings before interest, taxes, depreciation, and amortization. This growth will be driven by new contract awards, further expansion of the Integrated Logistics Services Platform, and optimized re-use of jack-up barges.

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Boeing Shares Drop after Air India Crash

A tail of an Air India Boeing 787 Dreamliner plane that crashed is seen stuck on a building after the incident in Ahmedabad, India, June 12, 2025. REUTERS/Amit Dave
A tail of an Air India Boeing 787 Dreamliner plane that crashed is seen stuck on a building after the incident in Ahmedabad, India, June 12, 2025. REUTERS/Amit Dave
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Boeing Shares Drop after Air India Crash

A tail of an Air India Boeing 787 Dreamliner plane that crashed is seen stuck on a building after the incident in Ahmedabad, India, June 12, 2025. REUTERS/Amit Dave
A tail of an Air India Boeing 787 Dreamliner plane that crashed is seen stuck on a building after the incident in Ahmedabad, India, June 12, 2025. REUTERS/Amit Dave

The crash of an Air India 787-8 Dreamliner jet minutes after taking off on Thursday poses another challenge for Boeing, whose new CEO has been trying to rebuild trust following a series of safety and production challenges.

It was not clear what caused the crash, as air disasters can occur for a number of different reasons. The London-bound plane crashed in India's western city of Ahmedabad, authorities said, in the world's worst aviation disaster in a decade.

The disaster, in which most of the 242 people on board were killed, muddies the efforts of CEO Kelly Ortberg to move past its recent issues after the planemaker hit production targets in May and received a vote of confidence from airline bosses in recent months. Shares were down about 4.9% on Thursday. Boeing said it was aware of the initial reports and was working to gather more information.

Before the crash, airline executives had been voicing greater confidence in Boeing's rebound in deliveries and in Ortberg's leadership after years of reputational damage for the planemaker.

At a recent summit in New Delhi, executives were more optimistic over Boeing's crises around safety and regulation. The widebody 787 planes, one of the most modern passenger aircraft in service, have never had a fatal crash until the Air India incident. They were grounded in 2013 due to battery issues, but no one was reported injured.

"It's a knee-jerk reaction (to the incident) and there's revised fears of the problems that plagued Boeing aircraft and Boeing itself in recent years," said Chris Beauchamp, analyst at IG Group.

Boeing's narrowbody 737 MAX jets were grounded for years following two fatal crashes and have faced years of scrutiny and production delays. Last year, the US planemaker came under renewed scrutiny after a door plug blew off a 737 MAX 9 mid-flight, prompting a temporary FAA grounding and fresh concerns over quality control.

Shares of Spirit AeroSystems, a key supplier, and GE Aerospace, which makes engines for the jet, also fell about 2% each. GE Aerospace said it has activated its emergency response team and would support the investigation, but did not specify if the Air India aircraft was equipped with its engines.

The engine maker did not immediately respond to a Reuters request for comment.

Boeing's outstanding debt also sold off modestly after the crash. Its bonds maturing in May 2029 were trading at 88 basis points over Treasuries, or 10 basis points wider than on Wednesday, according to a bond broker.