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
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
Rayan Mustafa Qutub, CEO of Ports Development Company, explains the role of King Abdullah Port in the kingdom’s plans to expand its logistics sector
The recent signing of a memorandum of ...
READ MORE
First Hyperloop TT section to cater to Alghadeer on the border of Abu Dhabi and Dubai
Abu Dhabi-based Aldar Properties has signed a memorandum of understanding (MoU) with US-based Hyperloop Transport ...
READ MORE
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
The IRU World Congress saw the sultanate accede to the TIR Convention and the signing of the Muscat Compact on road transport
The IRU (International Road Transport Union) World Congress, held ...
READ MORE
Localisation will create barriers to entry and move the market away from awarding work to lowest priced bidders
Abu Dhabi’s move to introduce the in-country value (ICV) programme into sectors outside ...
READ MORE
Emirate’s first standalone independent water project will have a capacity of 200 million imperial gallons a day
Abu Dhabi is planning to issue tender documents for the world’s largest independent water ...
READ MORE
Fund plans to build sports and medical cities north of Jeddah airport
A contract to build an airport city adjacent to the airport was awarded in August 2016
Fund to buy Al-Jowharah ...
READ MORE
Local manufacturers are keen to support the UAE’s long-term food security vision, but progress is hampered by issues such as the Russia-Ukraine conflict, inflation and increased competition
Local food and beverage ...
READ MORE
Investments will be made on oil and gas exploration and production programmes
Saudi Aramco’s CEO says the state oil company is planning to invest $300bn over the next 10 years in ...
READ MORE
Dubai construction sector will continue to decline
Unlocking Saudi Arabia’s potential as a logistics hub
Abu Dhabi developer plans to implement hyperloop
The Future of Middle East Energy
Oman positions itself for expanded global logistics role
In-country value could positively transform construction in the
Abu Dhabi to tender world’s largest IWP in
Saudi sovereign wealth fund to build Jeddah free
UAE food producers struggle with global challenges
Saudi Aramco to invest $300bn in oil and
25 October, 2017 | .By Wil Crisp
