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
Environmental, social and governance (ESG) principles can become a way for Abu Dhabi real estate to differentiate its offerings at a global scale
This article is the second in a series ...
READ MORE
Egypt leads value of deals signed
Egypt helped the Middle East record the highest value of deals let to date in 2018, with the country’s $7.8bn of contracts signed forming the ...
READ MORE
Critical care departments[1] are specialist units providing treatment and care for seriously ill patients and offering constant monitoring by intensivists and dedicated nurses.
Critical care beds are designed to provide necessary ...
READ MORE
Saudi Arabia will need to convince its fellow Opec and non-Opec members, in particular Russia, to deepen oil production cuts to salvage crude prices
Deepening the existing oil production cut agreement is no ...
READ MORE
Taweelah IWP will have a capacity of 200 MIGD
The project owners for the planned $915m Taweelah independent water project (IWP) in Abu Dhabi are targeting financial close in mid-June, according ...
READ MORE
By seeking expressions of interest for an estimated $4bn project, Borouge has helped to boost the market
Borouge, the 60:40 joint venture (JV) of Abu Dhabi National Oil Company (Adnoc) and Austria’s ...
READ MORE
Chairman and chief executive of Emirates Airline & Group comments on the challenges facing aviation
Climate change and rising costs are huge challenges for the aviation sector. Responding effectively to them ...
READ MORE
Mental health conditions are quite prevalent worldwide, with almost 10% of the global population suffering from a mental disorder[1]. As per WHO, one in four people in the world are ...
READ MORE
The emirates are working together on major new projects in 2018
The UAE is marking 2018 as the Year of Zayed to commemorate the birth of the federation’s founding president, Sheikh ...
READ MORE
SME Connect, brought to you by Mashreq NEOBiz and MEED Live, offered perspectives on the importance of harnessing digital platforms to support growth
2020 has been a tough year for small ...
READ MORE
Abu Dhabi real estate pivots to green
Middle East contract awards: September 2018
The Rising Need for Critical Care Beds in
Output cut becomes imperative for oil producers
Financial close for world’s largest RO desalination plant
Abu Dhabi bolsters regional petrochemicals market
Ten Minutes into the Future of Aviation
Managing mental health through various mobile applications
UAE construction consolidates with Year of Zayed
25 October, 2017 | .By Wil Crisp
