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
The two energy majors will jointly explore opportunities to reduce CO2 emissions, improve energy efficiency, and use renewable energy for oil and gas operations
Abu Dhabi National Oil Company (Adnoc) has ...
READ MORE
New olefins and aromatics facilities will be integrated with the Al-Zour refinery
Kuwait’s planned petrochemicals complex at Al-Zour, which includes olefins and aromatics facilities, will become operational in 2023, four years ...
READ MORE
The two energy companies will explore joint technology research and development (R&D) partnership opportunities across the oil and gas upstream value chain
Abu Dhabi National Oil Company (Adnoc) has signed a ...
READ MORE
Maire Tecnimont is expected to take between one and one a half years to complete the feed works
Abu Dhabi Polymers Company (Borouge), the joint venture of Adnoc and Austria’s Borealis, ...
READ MORE
IMPARTING KNOWLEDGE: The region’s construction industry is in a state of revival and can learn valuable insights from its oil and gas counterpart
With nearly $1.6tn-worth of major building and infrastructure ...
READ MORE
The Kuwait Oil Company project is worth $4.1bn
The first phase of the Kuwait Oil Company (KOC) Ratqa Lower Fars Heavy Oil megaproject is on course to be completed in March ...
READ MORE
By encountering first gas from the Ruwais Diyab unconventional play, Adnoc has taken a leap forward towards its 2030 gas production goal
Abu Dhabi National Oil Company (Adnoc) has encountered gas in Abu ...
READ MORE
Increased spending is needed to avoid future oil shortages, say industry leaders in Abu Dhabi
There is a growing consensus among international oil companies and global energy analysts that peak demand ...
READ MORE
State oil company targeting five offshore and three onshore fields for high-sulphur gas capacity expansions
Abu Dhabi National Oil Company (Adnoc) is considering the investment of $20bn in developing sour gas ...
READ MORE
Stock listing of assets is becoming a preferred fundraising method for Abu Dhabi
While Riyadh continues to work out its listing of Saudi Aramco, Abu Dhabi is moving ahead with more initial public ...
READ MORE
Adnoc and Total sign decarbonisation agreement
Timeline set for Kuwait chemicals complex completion
Adnoc and ExxonMobil sign R&D agreement
Abu Dhabi to tender Borouge 4 in mid-2020
Transforming Construction: Lessons from Oil & Gas
EXCLUSIVE: Phase one of Kuwait heavy oil scheme
Regional unconventional agenda gains momentum
ENERGY CLUB 1: Investing in the future of
Abu Dhabi considering $20bn investment in offshore sour
Abu Dhabi seeking IPO rewards
25 October, 2017 | .By Wil Crisp
