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
Latest industry findings report from MEED and Mashreq analyses emerging trends in the UAE's retail sector
Download your copy of the report here
In March 2020, the UAE’s retail industry came to ...
READ MORE
Government departments reportedly asked to value-engineer ongoing schemes and hold off on new projects
Dubai’s Department of Finance ordered a 50 per cent cut in capital spending and asked to delay ...
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
UAE Technology Think Tank identifies 18 actions to establish the UAE as a centre of excellence for technology research and innovation
A think tank of senior executives and academics from the ...
READ MORE
West Texas Intermediate closed at -$37.63
On 20 April, the main US crude benchmark, West Texas Intermediate (WTI), plunged into negative territory for the first time ever, with its May contract closing ...
READ MORE
The centre, set up with SR300m, has been tasked with setting policy and programmes for privatisation projects and public-private partnerships, as well as training personnel
A Riyadh-based equity analyst ...
READ MORE
Investors require a concerted display of political will to engage in the hundred billion dollars-worth of planned PPP projects across the region
Sustained low oil prices between 2015 and 2017 drove ...
READ MORE
UAE Minister of Energy and Industry, Suhail al Mazrouei
The ‘Ten minutes into the Future of Energy’ initiative, produced by MEED and powered by Mashreq, aims to explain and highlight the ...
READ MORE
National oil companies in the Middle East and North Africa are forging ahead with oil and gas field development projects and exploration drives
Middle East oil and gas is entering an ...
READ MORE
The power and water sector remains one of the Middle East and North Africa (Mena) region’s most active project segments, and this is set to continue into 2018, with a number ...
READ MORE
Dubai said to halt new project spending
Mena projects and the impact of Covid-19
UAE Technology Think Tank recommends ways to enabling
The implications of negative oil prices
Privatisation set to move up a gear this
Finding a regional model for PPP
Ten Minutes into the Future of Energy
Busy years ahead for upstream operators
Power and water sector undergoes major reforms
25 October, 2017 | .By Wil Crisp
