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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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Inflation Rose to 2.3% in Europe. That Won't Stop the Central Bank from Cutting Interest Rates

A view shows the Bercy Economy and Finance Ministry as a metro operated by the Paris transport network RATP passes over the Pont de Bercy bridge in Paris, France, November 28, 2024. REUTERS/Stephanie Lecocq
A view shows the Bercy Economy and Finance Ministry as a metro operated by the Paris transport network RATP passes over the Pont de Bercy bridge in Paris, France, November 28, 2024. REUTERS/Stephanie Lecocq
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Inflation Rose to 2.3% in Europe. That Won't Stop the Central Bank from Cutting Interest Rates

A view shows the Bercy Economy and Finance Ministry as a metro operated by the Paris transport network RATP passes over the Pont de Bercy bridge in Paris, France, November 28, 2024. REUTERS/Stephanie Lecocq
A view shows the Bercy Economy and Finance Ministry as a metro operated by the Paris transport network RATP passes over the Pont de Bercy bridge in Paris, France, November 28, 2024. REUTERS/Stephanie Lecocq

Inflation in the 20 countries that use the euro currency rose in November — but that likely won’t stop the European Central Bank from cutting interest rates as the prospect of new US tariffs from the incoming Trump administration adds to the gloom over weak growth.
The European Union’s harmonized index of consumer prices stood up 2.3% in the year to November, up from 2.0% in October, the EU statistics agency Eurostat reported Friday.
Energy prices fell 1.9% from a year ago, but that was offset by price increases of 3.9% in the services sector, a broad category including haircuts, medical treatment, hotels and restaurants, and sports and entertainment, The Associated Press reported.
Inflation has come down a long way from the peak of 10.6% in October 2022 as the ECB quickly raised rates to cool off price rises. It then started cutting them in June as worries about growth came into sharper focus.
High central bank benchmark rates combat inflation by influencing borrowing costs throughout the economy. Higher rates make buying things on credit — whether a car, a house or a new factory — more expensive and thus reduce demand for goods and take pressure off prices. However, higher rates can also dampen growth.
Growth worries got new emphasis after surveys of purchasing managers compiled by S&P Global showed the eurozone economy was contracting in October. On top of that come concerns about how US trade policy under incoming President Donald Trump, including possible new tariffs, or import taxes on imported goods, might affect Europe’s export-dependent economy. Trump takes office Jan. 20.
The eurozone’s economic output is expected to grow 0.8% for all of this year and 1.3% next year, according to the European Commission’s most recent forecast.
All that has meant the discussion about the Dec. 12 ECB meeting has focused not on whether the Frankfurt-based bank’s rate council will cut rates, but by how much. Market discussion has included the possibility of a larger than usual half-point cut in the benchmark rate, currently 3.25%.
Inflation in Germany, the eurozone’s largest economy, held steady at 2.4%. That “will strengthen opposition against a 50 basis point cut,” said Carsten Brzeski, global chief of macro at ING bank, using financial jargon for a half-percentage-point cut.
The ECB sets interest rate policy for the European Union member countries that have joined the euro currency.