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
As part of a wider partnership, MEED and Mashreq are proud to announce the launch of our construction networking clubs. Over the next 10 months, we will invite construction leaders ...
READ MORE
Everything you need to know about the new technologies that are changing project delivery in the Middle East
The construction industry has reached a tipping point in the adoption of digital ...
READ MORE
Rising oil prices mean the region will continue to be a key export market
September marks the start of a fresh business season in the Middle East, and the region remains ...
READ MORE
The Gulf region’s highest-quality projects were announced at the 2018 MEED Projects Awards in association with Mashreq.
“Recognising quality projects is not just about winning an award, but a means by which ...
READ MORE
Experts from Mashreq Bank credit the changing economic landscape and rising role of digitalisation in enhancing supply chain finance solutions
Digitalisation and a growing interest in supply chain resilience have been ...
READ MORE
Abu Dhabi has re-engaged with stakeholders for the design and route alignment for the upcoming phases of Etihad Rail, the UAE’s federal railway network.
This includes the rail project’s second stage, ...
READ MORE
How a robust outlook for global oil demand is triggering exploration and production in the region
In spite of the downside risk for oil prices, there is therefore an ongoing need ...
READ MORE
Alternate legal routes are available to companies that find themselves unable to meet contract commitments due to Covid-19
Findings from Mashreq Construction Club Connect Series episode I
On 16 April, the Mashreq ...
READ MORE
Executive Council circular says contractors’ contracts should be amended to ensure prompt supply chain payments
Abu Dhabi has made further moves to address the payment problems facing the emirate’s construction sector. Its ...
READ MORE
Etihad Rail’s link with Khalifa Port underscores the UAE’s commitment to integrated, complementary transport options
As 2020 has progressed, it has become increasingly evident that the slowdown in UAE construction activity ...
READ MORE
MEED and Mashreq launch construction networking clubs
BROADCAST 3: How digital technology is transforming construction
Navigating the minefield of Middle East markets
Winners of MEED Projects Awards, in association with
The evolving role of supply chain finance
EXCLUSIVE: Abu Dhabi moves on stalled rail project
Ushering in a new oil era
CONNECT SERIES: Applicable UAE construction laws amid Covid-19
Abu Dhabi orders construction payments to be made
UAE’s multi-modal strategy shifts up a gear
25 October, 2017 | .By Wil Crisp