Adco ready to sign Bab expansion contract

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
UAE overtakes Kuwait to lead GCC oil infrastructure investment
The oil projects either planned or under execution in the UAE are worth a combined total of $63.6bn The UAE has overtaken Kuwait to become the biggest investor in oil infrastructure ...
READ MORE
Adnoc
Abu Dhabi’s Supreme Petroleum Council (SPC) has approved plans by Abu Dhabi National Oil Company (Adnoc) for a capital expenditure of more than AED400bn ($108bn) over the next five years, as it moves to ...
READ MORE
Adnoc prepares to invite bids for two field development contracts
Adnoc Onshore is preparing to invite bids for two contracts aimed at developing its North East Bab site, according to industry sources. The subsidiary of Abu Dhabi National Oil Company (Adnoc) ...
READ MORE
Abu Dhabi energy major will detail investment plans for downstream players at event in Abu Dhabi
Abu Dhabi energy major will detail investment plans for downstream players at event in Abu Dhabi Abu Dhabi National Oil Company (Adnoc) wants to intensify its downstream expansion drive in order ...
READ MORE
The Future of Middle East Energy
New downloadable report from MEED, in partnership with Mashreq, examines how the region’s oil producers are responding to changing energy demand. The fundamentals of future energy demand look good for Middle East oil ...
READ MORE
Petrochemicals
New olefins and aromatics facilities will be integrated with the Al-Zour refinery Kuwait’s planned petrochemicals complex at Al-Zour, which includes olefins and aromatics facilities, will become operational in 2023, four years ...
READ MORE
Optimising value from oil assets with tertiary recovery
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
Middle East faces major decommissioning challenge
Many oil producers are unprepared for the inevitable and expensive task of disposing of oil and gas facilities at the end of their productive life Exploitable oil reserves were first discovered ...
READ MORE
Gas pipelines
Project is estimated to be worth $15bn The bid submission deadline for companies to bid for the design contract for Abu Dhabi’s Hail and Ghasha Sour Gas Development has been pushed ...
READ MORE
Ten Minutes into the Future of Energy
UAE Minister of Energy and Industry, Suhail al Mazrouei   The ‘Ten minutes into the Future of Energy’ initiative, produced by MEED and powered by Mashreq, aims to explain and highlight the ...
READ MORE
UAE overtakes Kuwait to lead GCC oil infrastructure
Adnoc breaks down $109bn five-year project plan
Adnoc prepares to invite bids for two field
Adnoc to launch downstream investment opportunities in May
The Future of Middle East Energy
Timeline set for Kuwait chemicals complex completion
Optimising value from oil assets with tertiary recovery
Middle East faces major decommissioning challenge
Deadline extended for UAE sour gas development
Ten Minutes into the Future of Energy
25 October, 2017 | .By Wil Crisp