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Jereh wins $2.7 billion in ADNOC Onshore awards

Jereh wins $2.7 billion in ADNOC Onshore awards

Built World

Three award letters cover Abu Dhabi's first large unconventional gas development and well tie-ins at three oil fields.

6 days ago: Jereh discloses three award letters

Overview

Updated 6 days ago

ADNOC Onshore has issued three award letters to the Abu Dhabi branch of Jereh Oil & Gas Engineering, part of China's Yantai Jereh Oilfield Services Group. They cover full development of the Ruwais Diyab unconventional gas field and well tie-in work across the Bab, North East Bab and Bu Hasa oil fields, with a headline value of $2.697 billion.

The awards put a Chinese contractor inside two ADNOC priorities: lifting crude capacity to 5 million barrels a day by 2027 and starting unconventional gas production. None of it is a signed contract yet. Definitive agreements are due within 90 days of each start date, and $484 million of the total is optional scope.

Why it matters

ADNOC is handing its first large unconventional gas project to a Chinese engineering firm, tying Abu Dhabi's gas plans to Chinese construction capacity.

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Key Indicators

$2.70B
Total headline value of the three award letters
About 18.1 billion yuan at the exchange rate cited in Jereh's filing.
$2.21B
Value excluding optional items
The headline total includes $484 million of optional scope that ADNOC may not order.
$484M
Optional scope inside the headline total
$310 million on Ruwais Diyab and $174 million on Bu Hasa.
345 mmscf/d
Raw gas targeted from Ruwais Diyab from 2029
ADNOC says output could eventually reach 1 billion standard cubic feet a day.
90 days
Window to sign definitive agreements
Counted from each award letter's start date; ADNOC can suspend payments if the deadline slips.

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Organizations Involved

YJ
Yantai Jereh Oilfield Services Group
Oilfield equipment and engineering company
Recipient of three ADNOC Onshore award letters through its Abu Dhabi branch

Shenzhen-listed Chinese oilfield services group whose Abu Dhabi branch took the awards.
ADNOC Onshore
ADNOC Onshore
State oil and gas operator
Issued the three award letters

The onshore operating arm of Abu Dhabi's state energy company.
Abu Dhabi National Oil Company
Abu Dhabi National Oil Company
State oil company
Took final investment decision on Ruwais Diyab on 2 November 2026

Abu Dhabi's state energy group and majority owner of the Ruwais Diyab concession.
TotalEnergies
TotalEnergies
Energy company
40% partner in the Ruwais Diyab concession

French energy major and minority partner in the Ruwais Diyab unconventional gas concession.
RS
Robt Stone Middle East
Construction contractor
Reported co-selected with Jereh on the Bab and North East Bab tie-in project

UAE contractor named alongside Jereh for the Bab and North East Bab well tie-in work.

Timeline

2025 November 2026

5 events Latest: 6 days ago
Tap a bar to jump to that date

  1. Jereh discloses three award letters

    Latest Disclosure

    Total $2.697 billion across Ruwais Diyab, Bab/North East Bab and Bu Hasa; contracts not yet signed.

  2. MEED links Jereh to Ruwais Diyab contract

    Contract

    Industry sources say ADNOC awarded the design, build and operate contract to Jereh.

  3. ADNOC takes Ruwais Diyab investment decision

    Investment

    Announced at ADIPEC: 345 million standard cubic feet a day from 2029 over 25 years.

  4. ADNOC Onshore picks Bab tie-in contractors

    Contract

    MEED reports Robt Stone Middle East and Jereh selected; project budget estimated at $1.2 billion.

  5. Jereh signs earlier ADNOC Onshore contract

    Contract

    Digital wellsite upgrade work at Bab, Bu Hasa and South East, estimated at $920 million.

Scenarios

1

Jereh signs definitive contracts for all three awards

Likely Resolves by Feb 15, 2027

Discussed by: Jereh's own filing, which sets a 90-day signing window from each start date

Each award letter requires a final agreement within 90 days of its start date. The Bab and North East Bab work starts 11 November 2026, so its contract would be due in early February 2027. If all three are signed, the awards become binding backlog rather than contingent pipeline.

2

ADNOC orders the optional scope, lifting the total toward $2.7 billion

Possible Resolves by End of 2028

Discussed by: Jereh's filing, which separates $484 million of optional items from base scope

The Ruwais Diyab award carries $310 million of optional items and Bu Hasa carries $174 million. Exercising them would move actual committed work from roughly $2.21 billion to the full $2.697 billion headline. The Bu Hasa award also lets ADNOC extend construction by up to 24 months.

3

One award lapses before a contract is signed

Unlikely Resolves by Feb 15, 2027

Discussed by: Jereh's risk notice, which flags policy, market and force majeure risks to signing

The award letters are not contracts. Jereh's filing says signing could be affected by policy, market conditions or force majeure, and that the projects will not materially affect its 2026 results. A missed 90-day window would leave scope uncommitted, though ADNOC's remedy is to suspend payments rather than automatically cancel.

Historical Context

3 moments from history that rhyme with this story — and how they unfolded.

November 2018

Ruwais Diyab concession agreement (2018)

ADNOC and TotalEnergies agreed to explore, appraise and develop unconventional gas resources at Ruwais Diyab. ADNOC took 60% and TotalEnergies 40%. The partners reported first gas output, understood to be on a pilot basis, two years later.

Then

The concession sat in appraisal for years while ADNOC ran technical studies and field tests.

Now

It became the base for Ruwais Diyab, which ADNOC says could eventually produce up to 1 billion standard cubic feet a day.

Why this matters now

Explains why the field is only now reaching full development, and who owns the resource Jereh will build.

2025

Jereh's digital wellsite contract (2025)

Jereh signed an engineering, procurement and construction contract with ADNOC Onshore for digital wellsite upgrades at Bab, Bu Hasa and South East. The estimated value was $920 million, excluding value-added tax.

Then

It established Jereh as a working contractor on ADNOC's onshore fields rather than a new entrant.

Now

The 2026 awards extend the same relationship into full field development and tie-in work.

Why this matters now

The new awards are an expansion of an existing supplier relationship, not a first entry.

Early 2025

Ruwais Diyab phase one construction (2025)

ADNOC awarded the phase one engineering, procurement and construction contract to local contractor Astra Engineering & Construction. Phase one targets 100 million standard cubic feet a day, with a central processing facility, two well pads and export pipelines.

Then

The work was understood to run 20 months, with the contractor also operating the facilities for 15 years.

Now

The project is being built in phases, with Jereh's design, build and operate award covering the second phase.

Why this matters now

Shows the development is staged, and that Jereh's role sits alongside rather than replaces the phase one contractor.

Sources

(8)
+2
Construction Review Shanghai Securities News via Sina Finance MEED Perspectify ADNOC Aletihad News Center Sina Finance MEED