(Yicai) Nov. 5 -- Jereh Group has secured three oil and gas services projects in the United Arab Emirates from a unit of Abu Dhabi National Oil Company that together are worth as much as USD2.7 billion, bolstering the Chinese energy services and equipment provider’s position in the Middle East market.

Jereh Oil & Gas Engineering Corporation-Abu Dhabi was awarded the projects by ADNOC Onshore, with work expected to start after contracts are signed, its Yantai-based parent company announced yesterday, citing the client’s letter of acceptance.

The first project, worth up to USD1.7 billion, will be delivered under a design-build-operate model, covering surface works for the Ruwais Diyab unconventional natural gas field in the Ruwais region, with a construction period of 29 months. Jereh Oil & Gas will be responsible for the design, procurement, construction, and commissioning of facilities and pipelines and will run the project for five years after it goes into production.

The second project, worth about USD600 million, will involve the Bab and North East Bab oilfields, with an estimated execution period of five years, while the third project will involve the Bu Hasa, Bida Qimzan, and Huwaila oilfields. It is worth about USD393 million and has a three-year service period.

The second and third awards are One Tie-In projects at ADNOC Onshore's existing oilfields. Under this arrangement, the owner issues phased orders according to its oilfield development plans.

The second project’s scope includes connecting newly drilled production wells to the oilfield’s existing infrastructure, as well as retrofitting or dismantling of surface facilities for existing wells, aiming to shorten the time for new wellhead hookups and retrofitting of surface facilities for existing wells. The third project only covers connection of new wellheads.

Ruwais Diyab is ADNOC Onshore’s first large unconventional natural gas project, Jereh said. Securing the award represents the comprehensive deployment in the Middle East of Jereh's integrated capabilities, spanning proprietary unconventional gas extraction and transportation technologies, production equipment manufacturing, digital production management, and efficient operations and maintenance services, it said.

Winning the biddingg for the two other projects further deepens the cooperation between the two companies after Jereh Oil & Gas secured the contract for ADNOC Onshore’s well digital renovation project last year, reflecting the client’s continued recognition of the supplier’s professional service capabilities in oil and gas extraction and performance in contract fulfillment, Jereh noted.

In February last year, Jereh Oil & Gas inked a USD920 million deal with ADNOC Onshore to oversee a project involving the intelligent transformation of various wellhead facilities in the client’s Bab, Bu Hasa, and South East oilfields. Once the project is completed, the fields are expected to operate without the need for personnel to be continuously stationed on site.

Jereh has actively expanded overseas in recent years. In addition to ADNOC, it has established long-term partnerships with other Middle Eastern oil and gas giants such as Saudi Aramco and Kuwait National Petroleum Company.

After climbing by as much as 3 percent in Shenzhen this morning, Jereh’s shares [SHE: 002353] closed down 1.9 percent at CNY88.27 (USD13.24) each. The stock staged a late-session rally yesterday, surging by its 10 percent daily trading limit to end at CNY90.

Editor: Futura Costaglione