Petrofac and ADNOC sign $600 million carbon capture contract

Petrofac said on Tuesday has signed a deal worth in excess of $600 million contract from ADNOC Gas for the Habshan carbon capture and storage (CCS) project.

CCS technology removes carbon dioxide produced by industrial processes from the atmosphere, or captures it at the point of emission, and stores it underground.

The engineering, procurement and construction contract from ADNOC Gas represents a significant achievement for Jersey-based Petrofac, which in August posted a half-yearly loss, dented by subdued activity at its largest unit of engineering and construction.

The ADNOC contract involves delivery of carbon capture units, associated pipeline infrastructure and a network of wells for carbon dioxide recovery and injection, the London-listed company said in a statement.

The deal comes as the Abu Dhabi-based company continues to take major steps forward on its decarbonisation plan.

Energy producers globally have identified CCS as key to cutting emissions without scaling back oil and gas output, and have started to invest in such technology at a time countries around the world are increasingly pushing towards cleaner fuels.