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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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Dollar Drifts as World Braces for Trump's Reciprocal Tariffs

A teller sorts US dollar banknotes inside the cashier's booth at a forex exchange bureau in downtown Nairobi, Kenya February 16, 2024. REUTERS/Thomas Mukoya/File photo
A teller sorts US dollar banknotes inside the cashier's booth at a forex exchange bureau in downtown Nairobi, Kenya February 16, 2024. REUTERS/Thomas Mukoya/File photo
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Dollar Drifts as World Braces for Trump's Reciprocal Tariffs

A teller sorts US dollar banknotes inside the cashier's booth at a forex exchange bureau in downtown Nairobi, Kenya February 16, 2024. REUTERS/Thomas Mukoya/File photo
A teller sorts US dollar banknotes inside the cashier's booth at a forex exchange bureau in downtown Nairobi, Kenya February 16, 2024. REUTERS/Thomas Mukoya/File photo

The dollar wobbled on Tuesday after a bruising quarter as weary investors braced for reciprocal tariffs from US President Donald Trump this week, a move that is likely to exacerbate the global trade war that has evoked US recession worries.

Investors' focus has been firmly on the new round of reciprocal levies that the White House is due to announce on Wednesday, with details scarce. Trump said late on Sunday that essentially all countries will be slapped with duties this week.

That has left currency markets subdued as traders stayed on the sidelines awaiting clarity on Trump's trade policies. Trump has already imposed tariffs on aluminium, steel and autos, along with increased tariffs on all goods from China.

"The second quarter may bring with it as much uncertainty and volatility for investors as the first quarter of the year," said Anthony Saglimbene, chief market strategist at Ameriprise Financial, Rueters reported.

"To date, there has been very little clarity on what and who these tariffs will target out of the gate. Market volatility could escalate depending on what and who is targeted."

The euro was 0.11% lower at $1.0805 after gaining 4.5% in the first quarter of the year, its strongest quarterly performance since October-December in 2022, thanks mainly to Germany's fiscal overhaul, although some investors are sceptical of the bull run lasting longer.

The Japanese yen was a shade stronger at 149.815 per dollar on Tuesday. The yen rose nearly 5% against the dollar in the January-March period on growing bets that the Bank of Japan would hike interest rates again.

Data on Tuesday showed business sentiment among big Japanese manufacturers worsened in the three months to March, a sign escalating trade tensions were already taking a toll on the export-reliant economy and complicating the BOJ's next move.

Beyond tariffs, a string of economic reports, including jobs and payrolls data, could shed much-needed light on how the US economy is holding up under a second Trump presidency.

Federal Reserve Chair Jerome Powell and other central bank officials' speeches this week also could offer clues on the path for US interest rates.

The Reserve Bank of Australia on Tuesday held interest rates steady at 4.1% and said it was still cautious about the outlook, though it dropped an explicit reference to being cautious about cutting rates again.

The Aussie was mostly steady, up 0.1% at $0.6256 in a muted response to the policy decision. The currency had touched a four-week low of $0.6219 on Monday, though it eked out a 1% gain in the first quarter.

"The RBA's statement suggests they're inching towards their next cut, but in no rush to signal one ahead of the election or the quarterly inflation figures," said Matt Simpson, senior market analyst at City Index. Australia will hold a general election on May 3.

The RBA delivered its first rate cut in over four years in February but has since adopted a cautious tone on further easing, with Governor Michele Bullock and other top policymakers downplaying the likelihood of multiple cuts.

The dollar index, which measures the US currency against six rivals, was flat at 104.23. Sterling last fetched $1.2916, while the New Zealand dollar was at $0.56755.