Petrofac has announced the cancellation of two contracts with the Abu Dhabi National Oil Company (ADNOC), jointly worth $1.65bn. The work was awarded only two months ago.

 

The project, worth around US$1.65billion, and awarded in February 2020, comprised two packages. Petrofac Emirates’ portion of the scope of work is valued at US$1.5billion.

 

The contract was for the engineering, procurement, construction, transportation, offshore installation and commissioning contracts are for the Dalma gas project. 

 

In a statement, a company spokesperson said, “Petrofac is committed to working with ADNOC over the coming weeks to explore alternative options to deliver this project in a way that supports their strategic objectives within the current challenging environment.”

 

Further Petrofac said it was working through its $7bn backlog and is tendering for other projects in Abu Dhabi.