Jereh wins $2.7 billion in ADNOC onshore contracts in Abu Dhabi

what happened

A unit of China's Jereh Oil & Gas Engineering in Abu Dhabi has been awarded three oil and gas development packages by ADNOC Onshore with a combined value of $2.7 billion. Reuters reports this based on a filing the company made with the Shenzhen Stock Exchange.

The largest package, worth $1.7 billion, covers the Ruwais Diyab unconventional gas development. Jereh will handle design, procurement, construction and commissioning of facilities and pipelines, then operate the project for five years once production starts. The second package, about $600 million, involves the Bab and North East Bab oilfields over an estimated five-year execution period. The third, worth $393 million, covers the Bu Hasa, Bida Qimzan and Huwaila oilfields, with a three-year service period at Bu Hasa.

The company said the projects should help ADNOC expand hydrocarbon output, strengthen gas supply infrastructure and improve efficiency across its onshore assets.

why it matters

For markets the deal is mainly a signal: ADNOC is putting more money into onshore production and gas infrastructure, pointing to plans to expand capacity. It does not directly change oil or gas prices, since these are service contracts rather than production volumes.

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