On the evening of November 4, Jereh Group announced that its wholly owned subsidiary, Jereh Oil & Gas Engineering's Abu Dhabi branch, had received three Letters of Award from ADNOC Onshore, the onshore subsidiary of Abu Dhabi National Oil Company (ADNOC). The combined value of the awards is approximately US$2.6967 billion (RMB 18.116 billion).

Among the three projects, Jereh has secured the surface facilities engineering, procurement and construction (EPC) contract for the full-field development of the Ruwais Diyab gas field, ADNOC's first major unconventional gas development project. This marks a significant breakthrough for Chinese oilfield service companies in the Middle East's high-end onshore engineering market, representing a transition from equipment suppliers to integrated engineering service providers for flagship projects.

According to the announcement, the three Letters of Award cover the following projects:

• Ruwais Diyab Gas Field Full-Field Development Project: Valued at US$1.7042 billion, including US$310 million in optional orders, accounting for more than 60% of the total award value. Under a Design-Build-Operate (DBO) model, Jereh Oil & Gas Engineering will undertake the design, procurement, construction, commissioning and start-up of surface facilities and pipeline networks, followed by operations and maintenance. The scope covers integrated utility systems for natural gas processing, associated liquid recovery, produced water treatment and sulfur recovery.

• Bab/North East Bab Onshore Facilities Development Project: Valued at US$599.7 million.

• Bu Hasa Onshore Facilities Development Project: Valued at US$392.8 million, including US$174 million in optional orders.

Optional orders across the three awards total approximately US$484 million. Their execution will depend on subsequent project arrangements and the client's funding decisions.

The strategic significance of the Ruwais Diyab project deserves particular attention. It is a flagship project underpinning ADNOC's commitment to unconventional gas development, with its final investment decision (FID) announced on November 2, the opening day of ADIPEC. According to ADNOC, the project is scheduled to begin production in 2029 and has an operating life of 25 years. Initial production is expected to reach 345 million standard cubic feet per day (MMscf/d) of raw gas, with the potential to increase to 1 billion standard cubic feet per day (Bscf/d) in the future. The gas will be processed on-site before being connected to the UAE's national gas network, supporting domestic industrial development and LNG exports.

The UAE ranks seventh globally in terms of natural gas reserves, with approximately 160 trillion cubic feet (Tcf) of unconventional gas resources, representing a major source of future growth for ADNOC. By securing the surface facilities contract for this landmark development, Jereh has effectively upgraded its position in the Middle East from an equipment and technology supplier to an integrated engineering service provider for a flagship gas field.

The three awards also reveal important commercial opportunities beyond their combined contract value, as they involve three distinct business models.

The Ruwais Diyab project adopts a Design-Build-Operate (DBO) model. In addition to one-time engineering revenue from project delivery, Jereh will receive ongoing operations and maintenance revenue throughout the 25-year operating period. This arrangement converts short-term project orders into long-term recurring income, helping mitigate the cyclical fluctuations of the oil and gas engineering industry.

The Bab/North East Bab project adopts a framework agreement (Call-Off) model, under which the client issues individual work orders in batches according to its development schedule. The scope includes connecting newly drilled production wells, removing and upgrading facilities at existing wells, and constructing supporting infrastructure for water wells, injection wells, disposal wells and water-alternating-gas (WAG) injection wells. It also includes the digitalization and upgrading of existing wells. This rolling order model, characterized by multiple smaller work orders over time, places considerable demands on contractors' local execution capabilities and responsiveness while helping establish long-term partnerships.

The Bu Hasa project covers three oil fields: Bu Hasa, Bida Qimzan and Huwaila, focusing on wellhead surface facilities and gathering pipelines. Together, the three business models provide a combination of long-term operating revenue and recurring work orders under framework agreements, reflecting the increasingly demanding requirements for contractors' integrated project delivery capabilities.

Viewed within ADNOC's broader strategic framework, these awards represent a significant opening for Chinese companies in Abu Dhabi's onshore engineering market. ADNOC is simultaneously advancing unconventional gas development and expanding its LNG production capacity. Its Ruwais LNG project, with an annual production capacity of 9.6 million tonnes, is the region's first fully electrified LNG facility and is expected to commence operations in the second half of 2028.

The expansion of conventional and unconventional natural gas production will inevitably generate substantial demand for supporting wellsite surface facilities, gathering pipelines and gas processing installations. This creates significant opportunities for service providers with integrated onshore facilities engineering capabilities.

As one of the UAE's longest-established oil producers, ADNOC Onshore has a strong financial position and credit rating, providing a relatively stable basis for payments and greater certainty in project execution.