Three projects, one major contractor
ADNOC Onshore has awarded approximately $2.7 billion in contracts to China’s Jereh Group, marking another major expansion of Chinese engineering companies into the UAE’s oil and gas construction market.
The three awards cover the Ruwais Diyab unconventional gas development, Bab/North East Bab oilfield facilities and Bu Hasa oilfield infrastructure.
According to Jereh’s November 4 stock exchange disclosure, the contracts have a combined announced value of $2.697 billion, including $484 million in optional items. Formal agreements remain to be finalized.
For Jereh, the awards represent a significant step beyond its traditional equipment manufacturing business, strengthening its position as an integrated engineering, procurement, construction and operations contractor.
For the supply chain, the interesting part is how much work these projects could generate across gas processing equipment, modular facilities, pipelines, instrumentation and construction services.
Ruwais Diyab takes the largest share
The largest contract, valued at $1.704 billion, covers the development of ADNOC’s Ruwais Diyab unconventional gas field.
Jereh will be responsible for engineering, procurement, construction, commissioning and subsequent operation of the development’s surface infrastructure.
The scope includes wellsite facilities, central gas processing, gathering networks, export pipelines, gas purification, associated liquids recovery, produced-water treatment and sulphur recovery.
Construction is scheduled to take 29 months, followed by an initial five-year operating period, with options for further extensions.
Unlike conventional EPC contracts, the announced value includes operational responsibilities and $310 million in optional items. Consequently, the full contract value should not be interpreted as construction expenditure.
Nevertheless, Ruwais Diyab represents the most attractive opportunity for major equipment suppliers.
Where the subcontracting opportunities are
Based on typical EPC cost structures for comparable onshore gas developments, the Ruwais Diyab project could create several substantial procurement and subcontracting packages.
Indicative package opportunities include:
| Major package | Estimated value |
|---|---|
| Gas processing and treatment equipment | $200M–$350M |
| Gas gathering and export pipelines | $150M–$250M |
| Wellsite facilities and modular packages | $100M–$180M |
| Utilities, water and sulphur treatment | $80M–$150M |
| Electrical, instrumentation and automation | $60M–$110M |
| Civil works, mechanical installation and construction | $150M–$250M |
These are EPCIntel.com indicative market benchmarks, not announced package budgets or confirmed subcontracts. They are overlapping planning ranges and should not be added together to calculate project capex.
Compressors, gas separation systems, dehydration equipment, process skids, pressure vessels, pumps, valves and automation systems could represent important procurement categories.
Local contractors could also benefit from civil construction, piping installation, electrical works, commissioning and maintenance support.
Bab and Bu Hasa add another $1 billion
While Ruwais Diyab attracts attention because of its size, the other two awards provide a different type of opportunity.
The $599.7 million Bab/North East Bab contract covers new well connections, modifications to existing production facilities, injection infrastructure and selected digital upgrades.
The project follows a five-year call-off structure, allowing ADNOC Onshore to issue work orders progressively as development requirements emerge.
Meanwhile, the $392.8 million Bu Hasa contract covers infrastructure across Bu Hasa, Bida Qimzan and Huwaila.
Its scope includes gathering pipelines, well connections, production skids, gas-lift systems, wellhead control panels and solar-powered equipment.
Together, these contracts could generate sustained demand for pipe manufacturers, fabrication workshops, skid-package suppliers, automation specialists and field construction subcontractors.
However, because both projects follow call-off arrangements, actual procurement volumes will depend on the work orders issued.
Chinese EPC contractors strengthen their position
Jereh’s latest awards are not its first major breakthrough with ADNOC Onshore.
In 2025, the company secured an approximately $920 million wellsite digitalization EPC contract covering Bab, Bu Hasa and South East oilfield areas.
The latest awards bring Jereh’s disclosed ADNOC Onshore contract values across the two announcements to approximately $3.62 billion.
The company also signed a $327 million contract with Petroleum Development Oman in October 2026, taking its recently announced Middle Eastern awards above $3 billion.
This growing portfolio demonstrates how Chinese contractors are expanding from equipment supply into large-scale integrated project execution.
What comes next for suppliers?
The immediate opportunity lies in Ruwais Diyab, where complex gas processing infrastructure should drive demand for engineered equipment and specialist construction services.
Bab and Bu Hasa offer a longer-duration pipeline of smaller, repeatable work packages.
For suppliers seeking access to ADNOC’s development program, Jereh is becoming an increasingly important contractor to monitor.
The question is no longer simply how many major oil and gas projects ADNOC will develop, but which EPC contractors will control the procurement opportunities flowing from them.
