Adco ready to sign Bab expansion contract

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
Coronavirus executive briefing (24 June)
Understand the Covid-19 outbreak, its impact on the global and regional economy, and initial implications for specific sectors Click here to download the full document
READ MORE
UAE oil and gas contract awards rebound
So far in 2017, there have been engineering, procurement and construction (EPC) contract awards worth a total of $2,265m in the UAE’s oil, gas and petrochemicals sector, according to regional ...
READ MORE
Bahrain upstream discovery could boost credit ratings
Ratings agency Moody’s says oil and gas discovery should attract foreign investment into the kingdom The discovery of hydrocarbon deposits in Bahrain – if verified by an international oil consortium as ...
READ MORE
Saudi Aramco tightens capital expenditure
Aramco’s supply chain community is trying to assess the impact of subdued capital spending in 2020 on their businesses Most analysts had predicted Saudi Aramco would register lower profits in 2019 than the ...
READ MORE
Bahrain holds on to energy revival hopes
Alongside existing strategic oil projects, the discovery of a giant offshore reserve at Khalij al-Bahrain has livened up Manama’s energy prospects When Bahrain’s Oil Minister Sheikh Mohammed bin Khalifa al-Khalifa announced ...
READ MORE
IMF forecasts 7.1 per cent drop in GCC’s GDP
Economic contraction estimates deepen for 2020, with rebound of 2.1 per cent expected in 2021 The Washington-based IMF has announced further cuts to its outlook for the GCC region, where a GDP ...
READ MORE
Adnoc formally signs contract for world’s largest oil storage project
South Korean contractor to build underground storage facility in the emirate of Fujairah Abu Dhabi National Oil Company (Adnoc) has formally signed a $1.21bn contract to South Korea’s SK Engineering and ...
READ MORE
UAE positions economy for recovery
Abu Dhabi's recovery depends on oil prices, while Dubai needs a rebound in aviation and tourism The UAE had 40,507 Covid-19 infections by 11 June, and although this number continues to ...
READ MORE
BRIEFING PAPER: Uncharted Territories
Regional producers reel from the economic impact of Covid-19 as global oil demand takes the slow path to stabilisation As battered economies in the Middle East and North Africa (Mena) region climb the slippery slope ...
READ MORE
Middle East faces major decommissioning challenge
Many oil producers are unprepared for the inevitable and expensive task of disposing of oil and gas facilities at the end of their productive life Exploitable oil reserves were first discovered ...
READ MORE
Coronavirus executive briefing (24 June)
UAE oil and gas contract awards rebound
Bahrain upstream discovery could boost credit ratings
Saudi Aramco tightens capital expenditure
Bahrain holds on to energy revival hopes
IMF forecasts 7.1 per cent drop in GCC’s
Adnoc formally signs contract for world’s largest oil
UAE positions economy for recovery
BRIEFING PAPER: Uncharted Territories
Middle East faces major decommissioning challenge
25 October, 2017 | .By Wil Crisp