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Petrofac wins $2 billion Asab deal

on Feb 9, 2009

Petrofac, the international oil and gas facilities service provider, announced in January
that it has been awarded a US$2.3 billion contract by Abu Dhabi Company for Onshore
Oil Operations (ADCO) for the full development of the onshore Asab oil field.

Under the 44-month lump-sum contract, Petrofac will provide engineering, procurement
and construction (EPC) services to upgrade the production capacity of the Asab field.

Crucially for local upstream players, the project is being pushed ahead at a time when
many contractors have begun to feel the pinch of a cautious start to 2009.

Signalling the green light for the field development project is a clear sign that national oil
companies aren’t retrenching in the face of market blips.

The rejuvenation of the Asab field is central to ADCO’s overall development plan to increase its
production and achieve the committed 1.8 million barrels of oil per day contributing towards
achieving the country’s additional production.

In addition to the production capacity upgrade of Asab, Petrofac’s contract scope includes
upgrading the facility’s capacity to accept increased production from Sahil, Shah and other south
east fields and to upgrade the associated utilities and water handling facilities.

“The Asab field development is one of the largest upstream projects recently awarded in the
region. We are delighted to have secured this significant project, which clearly demonstrates our
competitive position in the Middle East,” said Petrofac’s group chief operating officer, Maroun

“This further reflects the commitments of major oil companies in the region to continue with
strategic upstream projects,” he added.

Abdul Munim Al Kindy, ADCO general manager stated: “This award is a clear indication of Abu
Dhabi’s commitment to achieving its future production targets and such an investment clearly
indicates that the UAE will continue to play an active role in future energy supply.”

The contract represents one of Petrofac’s most important project awards to date. “This is a
significant achievement for our engineering and construction business,” said Commenting on the
award, Ayman Asfari, Petrofac’s group chief executive.

In 2008, Petrofac separately engaged in a joint venture with Mubadala Petroleum Services
Company, and the creation of Petrofac Emirates reinforces our commitment to working in Abu
Dhabi and to establishing a long-term and sustainable business in the Emirate.”

2009 Abu Dhabi Company for Onshore Operations (ADCO) has awarded a US$805 million contract to install gas compressor units at its Bab oil field in Abu Dhabi to South Korean company SK Engineering & Construction. procurement and construction of its Bab gas compression project in Abu Dhabi to SK Engineering & Construction. sustainable capacity is currently 300. Technip is the front-end engineering and design consultant.C.The deal comes hot on the heels of the $543 million lump-sum contract by Kuwait Oil Company (KOC) for Petrofac. and South Korea's SK Engineering and Construction. The EPC contract is for a new gas pipeline running from KOC’s Booster Station 131 in North Kuwait to its liquefied petroleum gas plant located at the Mina Al-Ahmadi refinery. Seven companies had submitted bids to win the contract including Dubai-based Dodsal. India's Larsen & Toubro. ADNOC subsidiary awards US$818 million contract by Kevin Baxter on May 3. South Korea's GS Engineering & Construction. Bab has a design capacity of 420. Abu Dhabi Company for Onshore Operations (ADCO) has awarded a $818 million contract for the engineering. The contract was signed at a special ceremony by the general manager of ADCO. Paris-based Technip with the local National Petroleum Construction Company (NPCC). and NPCC with Technip and Germany's Man.K. and the president of S.000 barrels a day (b/d). Italy's Saipem with Lebanon's Contracting & Trading (CAT).000 b/d.“ Kindy said. Engineering. with difficulties in maintaining reservoir pressure. came in at up to three times the initial estimated budget of $600m. The original tender was cancelled after two bids submitted by a German team of ILF Consulting Engineers with Siemens. "This big investment also shows the UAE's commitment to playing an active role in securing future energy supplies. The project is scheduled to be completed in 36 months. K. Choi. Abdul Munim al Kindy. The contract will last for three years and involves the installation of three gas compression units by the South Korean company. However. . 2009 After recently announcing that it had US$2 billion to spend on construction contracts. SK Engineering wins US$805m ADCO contract by Abdelghani Henni on Mar 18.

is supplying the variable speed drive system (VSDS) electrical scope. The contract for supplying gas compressors was awarded to German company. we are able to provide equipment capable of handling the highly sour and corrosive gas compositions of these fields.5 million tonnes of polyolefins annually by the end of 2013. Borouge awards US$1. Total. “Our expertise in gas lifts and gas injection applications gives ADCO the confidence that our products can meet the challenges of these projects.1 billion to German gases and engineering company the Linde Group. The gas produced will be fed directly into the UAE’s domestic network. Man Turbo. 2009 A consortium consisting of GE Oil & Gas and ABB has won two contracts collectively worth more than $80 million to supply compressors. turbomachinery for GE Oil & Gas. vice president. electrical systems and services for the Abu Dhabi Company for Onshore Oil Operations (ADCO). including motors. Abu Dhabi.” Abdulaziz Alhajri.” GE Oil & Gas is supplying centrifugal compressors for the gas lift project at Asab and the gas injection project at Sahil. By combining their resources and experience. ADCO awards $80 million Asab and Sahil field work by Daniel Canty on May 28. which will increase the total capacity of the plant to 4.1 billion contract to Linde by Abdelghani Henni on Jul 5. Owned 60% by the Abu Dhabi National Oil Company and 40% by Shell. to build another 1. has announced it has awarded a contract worth US$ 1. BP. CEO of Borouge . ADCO is aiming to increase its production to 1. The equipment will be used for new gas lift and gas injection facilities at the Asab and Sahil fields respectively. by ADCO.” said Joe Mastrangelo. United Arab Emirates. The projects will be commissioned in the fourth quarter of 2012.ADCO is a subsidiary of the Abu Dhabi National Oil Company (ADNOC) that concentrates on developing onshore oil and gas fields. GE Oil & Gas and ABB were able to win both contracts against strong competition. 2009 The Abu Dhabi Polymers Company (Borouge). a global leader in power and automation technologies. ABB. “The awarding of this contract confirms Borouge’s commitment to the Borouge 3 project.5 million tonnes per year (t/y) ethane cracker at its production site in Ruwais. which are required for each of the two fields to achieve their production targets. offering a broad technology package that meets the oil production and recovery requirements of the Asab and Sahil projects. “By leveraging our experience in working with extremely resistant and advanced technology materials for compressor components. a major expansion of our production facility in Ruwais.8 million barrels per day. transformers and converters. ExxonMobil and Partex.

" The contract will be executed on a ‘lump sum turnkey’ basis whereby the construction work will be executed by the Consolidated Contractors Company (CCC). “We at Linde Engineering are proud to be the supplier of ethylene technology for the Ruwais complex.” he added. enriched by our gases joint venture ‘Elixier‘.2 billion for engineering. as well as related off-site utilities and marine facilities. The company is a joint venture between the Abu Dhabi National Oil Company (ADNOC) and Borealis. the expansion includes the construction of second generation Borstar polypropylene and polyethylene units.” Dr Aldo Belloni. GASCO. Our relationship with ADNOC. and ultimately 4. “In addition to the ethane cracker. construction and commissioning (EPC) works for the Integrated Gas Development (IGD) Project to be built at Habshan and Ruwais in Abu Dhabi. a low density polyethylene unit and a Butene unit. setting a new benchmark for the industry.said. member of the executive board of Linde AG said. After completion of the new cracker.5 million t/y ethane crackers. The Italian company will carry out the FEED of the multiple polyolefin units. The contract will last for around nine months. procurement. a subsidiary of state-owned hydrocarbons giant Abu Dhabi National Oil Company (ADNOC) said that the four packages were awarded on a lump sum turn key basis and will cover the . Borouge is expanding its annual production capacity of polyolefins in Abu Dhabi to 4. Borouge will have the world’s largest ethane cracker complex. ADNOC JV awards Borouge contract to Tecnimont by Kevin Baxter on Jul 6. "Nowhere else in the world has a petrochemical company installed so much olefins capacity in such a short time as Borouge is currently doing in Abu Dhabi. The announcement follows the recent selection of Bechtel as the project management support for Borouge 3. The new cracker. GASCO awards $9. a leading provider of chemical and plastics solutions.5 million tonnes of polyolefins annually by 2013.2bn contracts for IGD Project by Kevin Baxter on Jul 16. located in Ruwais. the latter of which is currently under construction as part of the plant’s expansion from 600. the third of its kind to be built by the German contractor for Borouge in one decade. has confirmed that it has awarded contracts worth a total of US$9. 2009 Borouge has announced that it has awarded the three main contracts for the front-end engineering and design (FEED) stage of its Borouge 3 expansion to Tecnimont in a deal worth US$22 million. and Borealis is now stronger than ever. complements the 600. Abu Dhabi.5 million tonnes by the end of 2013. (GASCO).000 to 2 million t/y of polyolefins by mid-2010. the LDPE (low density polyethylene) unit and the utilities and offsite facilities. 2009 Abu Dhabi Gas Industries Ltd.000 t/y and 1.

vision. The $1. “This challenge would not have been met but for the ambition. The IGDP is a strategic initiative of the Abu Dhabi National Oil Company (ADNOC) to process and supply gas to meet the growing needs and development plans of Abu Dhabi. A joint venture between the contractors JGC of Japan and Tecnimont of Italy were awarded the process plant contract which is worth a total of $4. 1 billion scfd of gas will be transferred to the offshore oil field of Umm Shaif via Das Island and pumped into the field to increase production. The completion dates for all works is the third quarter of 2013. utilities and offsites. The UK-based company will carry out the works in a joint venture with South Korean outfit GS Engineering. ADMA-OPCO GM said. IGD-HAP is the first package of several offshore and onshore packages of the multi billion dollar Integrated Gas Development Project (IGDP). GASCO said in a statement that the initial phase of the projects will commence from the respective contractors' home offices before moving to the respective sites at Habshan and Ruwais for construction activities. The IGD Project will be built at a new location in Habshan titled Habshan 5. .5 million contract with Sonatrach in Algeria and a $22 million FEED contract with an ADNOC joint venture Borouge. ADNOC subsidiary signs $402 million gas contract by Kevin Baxter on Jul 23. This is the third contract Tecnimont has won in the MENA region this month after securing a $61. GASCO said that the projects will create around 30. The site will house four gas processing trains with a combined processing capacity of 2 billion standard cubic feet per day (scfd) of gas. the Ruwais fourth natural gas liquids (NGL) train and Ruwais storage tanks.7 billion. will also provide a permanent link between offshore and on shore facilities of ADNOC and will provide operational flexibility for oil and gas production. Petrofac continue its run of big contract awards in 2009 by being awarded the $2.1 billion Ruwais fourth NGL train contract. Of of a process plant.7 billion offsites and utilities contract was awarded to Hyundai Engineering & Construction of South Korea.000 jobs at the peak of construction activities.” Ali Al-Jarwan. leadership and support of ADNOC to utilize the best prevailing market conditions as golden opportunity for investment. 2009 Abu Dhabi Marine Operating Company (ADMA-OPCO) has announced that it signed a contract worth $402 million for the engineering procurement and construction (EPC) of the Integrated Gas Development Project –Habshan Platform (IGD-HAP) with the National Petroleum Construction Company (NPCC). The rest of the gas will be sold domestically in the UAE. The IGD Project. The Ruwais storage tanks package was US company CBI and is worth a total of $530 million.

The contract is for engineering. Gasco is 68 per cent owned by the Abu Dhabi National Oil Company (Adnoc). (GASCO). with the rest held by Royal Dutch Shell. the onshore division of Adnoc.' Gasco said in a statement. ADCO is the Abu Dhabi Company for Onshore Oil Operations. which will be completed in the third quarter of 2012.4 million) gas development contract to France's Technip. Total and Partex. 'The Asab 3 project will facilitate increased oil production from new ADCO facilities which are presently under development. reports Reuters. Under the deal announced on Sunday. Gasco has already awarded about $9 billion for major gas projects in the Gulf emirate. 27 December 2009 A South Korean consortium won a $40bn deal to build and operate four nuclear reactors for the UAE. The 'Asab 3' project is being developed to process an additional 150 million cubic feet per day of associated gas from the existing Asab.ADMA-OPCO’s responsibilities towards the project includes the offshore portion of gas production by drilling additional gas wells and processing platform at Umm Shaif for gas dehydration and transfer to Das Island through the new 46” 38 km main gas line to be laid under this contract. . the first nuclear plant in the Gulf Arab region is scheduled to start supplying power to the UAE grid in 2017. South Korean group wins $40bn UAE nuclear deal by Amena Bakr on Sunday. Technip scoops $408 million Gasco contract by Arabian Oil & Gas Staff on Nov 17.2 billion were awarded last week by Abu Dhabi Gas Industries Ltd. Gasco said last year it was investing $25 billion in gas processing plants and pipelines to meet surging gas demand. Shah and Sahil oil fields. the firm said in a statement. Other contracts for the IGDP worth a total of $9. Both ADMA-OPCO and GASCO are both subsidiaries ADNOC. procurement and commissioning (EPC) work on Gasco's 'Asab 3' project. 2009 Abu Dhabi Gas Industries (Gasco) has awarded a Dh1.5 billion ($408. beating US and French rivals to one of the Middle East's biggest ever energy contracts. NPCC is also a state-controlled company in Abu Dhabi.

and all four reactors are due to be completed by 2020. South Korean President Lee Myung-bak was in the UAE to sign the deal with UAE President Sheikh Khalifa bin Zayed al-Nahayan. The UAE. "Korea has a good track record in terms of safety and price and it's a surprise to see the US and France are not part of the bid because they are the ones with the more political ." the statement said. a unit of Japan's Toshiba Corp. an industry source said. the world's third-largest oil exporter. who had expected the deal to go to one of the other consortiums for strategic reasons. Work on the first nuclear plant in the Gulf Arab region is expected to begin in 2012. The choice of South Korea surprised some analysts.000 MW last year. and US-based Westinghouse Electric.000 MW in 2020 from around 15. and the consortium expects to earn another $20bn by jointly operating the reactors for 60 years. CEO of the Emirates Nuclear Energy Corporation (ENEC) in a separate ENEC statement. needs the nuclear power to help meet an expected rise in electricity demand to 40." said Mohamed al-Hammadi. amid a petrodollar-fuelled economic boom." Led by state-owned utility Korea Electric Power Corp (KEPCO). Doosan Heavy Industries. "The UAE's choice must have been based on strictly commercial terms because in terms of political clout in the region it's nil. The KEPCO-led consortium includes Hyundai Engineering and Construction. "It is more than six times bigger than the previous single contract. The $20bn Korean bid to build the four plants was $16bn lower than the bid submitted by the French group. "We were impressed by the Korean consortium's world-class safety and its demonstrated ability to meet the UAE program goals. build and run four reactors with capacity to produce 1. South Korea hopes to build more plants beyond 2020 as the UAE looks to construct more reactors to meet future demand.400 megawatts each of electricity. the statement said. Samsung C&T Corp. The South Korean group beat a French consortium and another group led by US giant General Electric. the consortium will design."This deal is the largest mega-project in Korean history. "Considering the growth estimates in the UAE's power demand. The contract to build the plants is worth around $20bn. South Korea expects to win additional projects to build nuclear power reactors in addition to this contract for four reactors." said a statement from the South Korean president's office. president of Houston-based Asia Pacific Energy Consulting." said Al Troner.

have fuelled concerns of a regional arms race. chief economist at Banque Saudi Fransi- Credit Agricole Group in Riyadh. Dubai's debt had cast a shadow over financing prospects for other Gulf borrowers but analysts expect blue-chip names like Abu Dhabi and Qatar to weather the fallout." said John Sfakianakis. and has managed to avoid the worst of the global economic slowdown as well as the debt crisis that has hit neighbouring Dubai. holds most of the UAE's crude reserves." he said. fault monitoring systems and substation control and monitoring systems." Nascent nuclear programmes in the Middle East. "The UAE's nuclear programme is a strategic project. "These are long-term projects and many of the finance providers will look beyond what is happening today. a programme the United States and European allies fear is a cover to develop the ability to produce atomic bombs. the Dubai storm will be over. "As a proven performer in the oil and gas industry. "I think by the time they do this (issue bonds). The emirate of Abu Dhabi.rather than attempting to enrich uranium. the company said that the scope of work will see ABB supply a range of electrical equipment. ABB will also deliver. 2010 The Switzerland-based technology group ABB has announced that it has signed a deal worth US$21 million with the contractor China Petroleum Engineering & Construction Corporation (CPECC) that will see the company design and supply a state-of-the-art integrated electrical system for the $2. ABB is proud to be a part of this landmark project in the UAE. (Reuters) ABB awarded $21m contract for ADCOP project in UAE by Kevin Baxter on Jan 7." Bjarte Pedersen head of the Process Automation Division in the Middle East and Africa for ABB. the fuel for nuclear power plants -. said. including in Saudi Arabia and Egypt. in addition to the usual mix of project financing methods such as export agencies and banks. But the UAE has already pledged to import the fuel it needs for reactors -. which is driving the UAE nuclear programme. capacitor banks and resistors. plus Abu Dhabi would have a substantial windfall from oil revenues.3 billion Abu Dhabi Crude Oil Pipeline (ADCOP) project.strength in the Middle East. ring main units. including 33kV gas-insulated allay fears about uranium enrichment facilities being used to make weapons-grade material. In a statement released to the press." He said the UAE could issue bonds in future to fund the project. protection panels. Iran has long been at odds with the West over its declared plans to use enriched uranium to generate electricity. .

Emirati newspaper Al Ittihad reported on Saturday. 06 March 2010 Abu Dhabi and ConocoPhillips have awarded a AED1. 23 March 2010 The onshore division of state run Abu Dhabi National Oil Co (ADNOC) signed a $560. ADCO added.4 million oilfield development contract with the UAE's National Petroleum Construction Company (NPCC). It would include building an oil gathering system and a pipeline to the Asab field. local media reported the joint venture was planning to award around $10 billion of contracts in the first half of 2010 to develop the sour gas field.1bn dirham ($300m) construction contract for their Shah gas project to Al Jaber Group. International Petroleum Investment Company (IPIC). The two parties would sign the final contract soon. The pipeline will develop a reliable export capability on the eastern seaboard of UAE and reduce shipping congestion in the Strait of Hormuz.paper by Reuters on Saturday. ADCO said. The project is to develop infrastructure at the Qusahwira oilfield. Construction on the fast track project began in early 2008 and is scheduled to be completed by August 2011. Last month. With a length of 400km and a diameter of 48 inches. while providing a secure evolution path forward to help them maintain their competitiveness and reach their productivity targets in the years to come. IPIC is a sovereign wealth fund attached to the Abu Dhabi government that specialises in investing in oil and gas projects for the emirate Abu Dhabi awards $300m Shah gas work . the narrow waterway through which Persian Gulf oil producers ship their crude exports." he added. Al Ittihad quoted a source as saying. the pipeline from Habshan in Abu Dhabi. . ADCO said on Tuesday.5 million barrels of crude oil per day to the main terminal in Fujairah in the northern Emirates. which links to the Abu Dhabi Company for Onshore Oil Operation (ADCO) facility. Abu Dhabi signs $560m oil field deal with NPCC by Amena Bakr on Tuesday. get the maximum value out of their control system investment."Our comprehensive automation system will help the owner. will transport an estimated 1.

tanks. Hyundai Engineering and Samsung C&T said in regulatory filings today.8 MMBOPD Project aims to raise ADCO’s crude oil production from 1. The 1. The firm will also work on tie-ins of 54 water injection wells.The company plans to add 30.000 barrels per day (bpd) from the first phase of development of the Qusahwira oilfield by 2013. flare stacks and other components.59bn UAE plant order by Sangim Han on Monday. (Reuters) ADCO awards NPCC Bab field contract by Peter Ward on Feb 17.4 MMBOPD through an increase in production at the North East-Bab oil field and the commencement of production at three new oil fields. vessels. NPCC beat six other bidders to the deal. Hyundai Engineering will get 55 percent of the order and Samsung C&T the remaining 45 percent. NPCC will carry out EPC work related to production wells tie-ins and flow lines connection production wells to four new RDSs associated with several transfer lines. (Bloomberg) .8 million barrels of oil per day (MMBOPD) Project. separators. a total of 950km pipelines.4 million bpd The expansion is part of a wider plan for the world's third largest oil exporter to boost capacity to around 3. Korea Electric won the order from the UAE in December.5 million bpd in 2018 from around 2. Samsung get $5. The companies plan to complete the plants by May 2020 for Korea Electric Power Corp. awarded by Abu Dhabi Company for Onshore Oil Operations (ADCO). 29 March 2010 Hyundai Engineering & Construction and Samsung C&T have won a $5.59bn order to build nuclear-power plants in Abu Dhabi. The field is located south east of the UAE's capital Abu Dhabi. Hyundai. ADCO aims to boost its output capacity to 1.8 million bpd from around 1. Production at Bab field will be increased through developments at the Habshan-2 and Thamama-G zones. 2010 Abu Dhabi Company for Onshore Operation (ADCO) has awarded an EPC contract to National Petroleum Construction Company (NPCC) to carry out works on Bab Field as part of Phase 1 of ADCO’s 1.8 million bpd. various pumps. heaters.