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
Major petrochemicals producers have been making considerable capital investments in setting up derivatives complexes
The Middle East and North Africa (Mena) region is set to witness a gathering of pace in ...
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
Understand the Covid-19 outbreak, its impact on the global and regional economy, and initial implications for specific sectors
Click here to download the full document
READ MORE
Oil producers continue to focus on developing projects to increase production capacity, while the gas sector is set to benefit from the move away from coal and oil
Global demand for ...
READ MORE
Total value of deals secured by top 10 contractors down 40 per cent from last year
The UK’s Petrofac, Italy’s Saipem, and Japan’s JGC Corporation have tied for the title of ...
READ MORE
State oil producer had already shown signs of a change in partnership strategy
Lower oil prices over the last three years have forced national oil companies (NOCs) in the Middle East ...
READ MORE
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
COP26 will increase demands for greater supply chain sustainability, says experts at latest MEED-Mashreq webinar
Watch the on-demand webinar here
The Glasgow Climate Pact, signed on 13 November at the conclusion of ...
READ MORE
Abu Dhabi energy major aims to achieve its 2030 gas goal through large capex projects to raise production, as well as an exploration campaign to build the emirate’s gas reserves
Abu ...
READ MORE
Downward revision comes as IMF warns of deteriorating economic headwinds for the region
The IMF has downgraded sharply its forecast for regional economic growth due to lower-than-expected oil prices and a ...
READ MORE
Petrochemicals sector poised for expansion
Mena projects and the impact of Covid-19
Coronavirus executive briefing (24 June)
Producers renew upstream investment
Three firms tie for title of top EPC
Abu Dhabi oil opens up assets to global
Adnoc breaks down $109bn five-year project plan
Transforming the supply chain
Adnoc powers the UAE’s gas ambitions
IMF sharply lowers regional growth projections
25 October, 2017 | .By Wil Crisp
