Adco ready to sign Bab expansion contract
25 October, 2017 | By Wil Crisp
The state-backed Abu Dhabi Company for Onshore Petroleum Operations (Adco) is ready to sign the contract for the Bab Integrated Facilities Project Expansion, one of the largest planned oil and gas projects in the UAE.
“Negotiations have finished and the deal has been finalised,” said a source.
“Adco is now just looking for the right opportunity to formally announce the project award and sign the contract.”
Adco is likely to choose the Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC) 2017, which is due to take place on 13-16 November, in order to announce the contract, according to the source.
The engineering procurement and construction (EPC) contract for the Bab Integrated Facilities Project Expansion project is estimated to be worth around $1.7bn.
Revised bids for the EPC contract were submitted on 10 September after a series of deadline extensions.
Earlier companies were asked to submit bids by 18 June. This was subsequently extended to 8 August – when bids were submitted by companies.
Then Adco asked companies to submit a new set of revised bids by 10 September.
MEED understands that the companies which submitted bids are:
- SK Engineering & Construction (South Korea) / Intecsa (Spain)
- Tecnicas Reunidas (Spain)
- Saipem (Italy)
- JGC (Japan) / National Petroleum Construction Company (UAE)
- China Petroleum Engineering & Construction Corporation (China)
- Petrofac (UK)
China Petroleum Engineering & Construction Corporation (CPECC), which is affiliated with the state-owned China National Petroleum Corporation (CNPC), submitted the lowest bid for the contract and is the favourite to win the contract according to industry sources.
The scope of work involves installing new facilities at Adco’s Bab field, located 160 kilometres southwest of Abu Dhabi city.
As part of the original scope, surface facilities would be delivered for the Thamama-A, Thamama-H and Thamama-B production zones to achieve a total sustainable oil production rate of 450,000 barrels a day (b/d).
Adco re-tendered the Bab integrated facilities expansion scheme on 22 December, a year after cancelling a previous tender on the project.
The re-tendered version of the project had a reduced scope of works and the estimated budget was reduced from $3bn to about $2bn.
Adco is a joint venture of Abu Dhabi National Oil Company (Adnoc) and six international oil firms.
Related Posts
Enhanced oil recovery represents the leading front for oil extraction capacity expansion in the Gulf
Enhanced oil recovery (EOR) in the Middle East took a leap forward in November with the ...
READ MORE
This is article is the second in a series from the MEED-Mashreq Healthcare Business Leaders Forum held on 23 February in Dubai. The event saw leading industry experts gather to ...
READ MORE
Latest exclusive findings and analysis on the impact of Covid-19 on the Middle East and North Africa projects market
Click here to watch the latest update on the impact of Covid-19 and ...
READ MORE
So far this year, the UAE has awarded $2.3bn-worth of engineering, procurement and construction (EPC) contracts for hydrocarbons projects, according to regional projects tracker MEED Projects.
This is already marginally above ...
READ MORE
Economic contraction estimates deepen for 2020, with rebound of 2.1 per cent expected in 2021
The Washington-based IMF has announced further cuts to its outlook for the GCC region, where a GDP ...
READ MORE
The region’s post Covid-19 projects market will be very different to the market before 2020
It has been a challenging few years for the Middle East and North Africa (Mena) projects ...
READ MORE
Adnoc intends to transform itself into a global downstream major by investing $45bn to create an integrated refining and petrochemical complex in Ruwais
An astounding investment of $45bn has been announced by ...
READ MORE
There has been a string of major contracts awarded during the first week of July
The projects market has made a strong start to the second half of this year with ...
READ MORE
Companies faced with dampened prospects at home will increasingly look to international markets to secure growth
As governments around the world move to put the Covid-19 pandemic behind them, the main ...
READ MORE
Construction companies face supply chain and payment challenges as Covid-19 disrupts markets
Dubai-based Mashreq Bank is working to support the construction sector as contractors come under additional strain due to fresh ...
READ MORE
Optimising value from oil assets with tertiary recovery
Healthcare gears up for new ways of working
Mena projects and the impact of Covid-19
UAE records pick-up in oil and gas contract
IMF forecasts 7.1 per cent drop in GCC’s
What to expect project-wise in 2021
Abu Dhabi’s ambition to create the downstream Silicon
Projects market makes strong start to second half
State support is critical for export-led growth
Mashreq to assist contractors with coronavirus risks
25 October, 2017 | .By Wil Crisp
