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
Contract awards have failed to keep pace with the large volume of projects that are now being completed
Dubai’s construction market retreated sharply during the second quarter of this year, with ...
READ MORE
More projects are being completed than started as Expo 2020 deadline looms
Dubai’s construction sector is in delivery mode. With just over one year to go until the opening of Expo ...
READ MORE
GlobalData tracker finds regional contractors are most exposed to the downturn in construction activity
Contractors in the Middle East and Africa (MEA) region are most likely to be impacted by Covid-19 ...
READ MORE
At its expo pavilion, the US plans to take visitors on a journey through space
The participation of the US at Expo 2020 will highlight “everything about America – democracy, life, ...
READ MORE
A more nuanced and transparent approach to procurement can help clients and contractors negotiate better agreements in the long term
This article is extracted from the report 'UAE Construction After Covid-19'
Legal ...
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
Regional airline carriers can expect a slow and painful post-pandemic recovery
The Covid-19 pandemic has had a significant impact on the dynamics of the GCC’s aviation industry since March 2020, but ...
READ MORE
Supply chain finance models serve as an optimal way for Middle East’s retail suppliers to gain quicker and more flexible access to working capital
On 10 February, a live webinar hosted ...
READ MORE
Sandeep Chouhan, executive vice-president and group head of operations and technology at Mashreq, explains how digital technology is transforming the way we bank
What is the impact of Big Data and ...
READ MORE
The GCC’s Healthcare sector has been growing due to several demand drivers like population growth, increasing insurance coverage and availability of skilled manpower. These growth drivers coupled with government initiatives ...
READ MORE
Dubai’s construction market dropped sharply in second quarter
Dubai construction sector will continue to decline
Middle East contractors most impacted by Covid-19
US to reinvent future at Expo 2020
Commercial deliberations for renegotiation
Abu Dhabi bolsters regional petrochemicals market
Future of region’s aviation sector still up in
Sustaining the supply chain
MARKET TALK: The other side of the digital
Integrated Sports Health and Wellness – A growing
25 October, 2017 | .By Wil Crisp
