Adco awards contracts for SAS project

Jan 26, 2009 01:00 AM

Abu Dhabi's upstream arm, Abu Dhabi Company for Onshore Oil Operations (Adco) has awarded $ 3.5 bn contracts which includes two Engineering, Procurement and Construction (EPC) packages for the development of its Sahil, Asab and Shah Fields (SAS).
Adco said a $ 2.3 bn contract was granted to international oil & gas facilities service provider Petrofac for the development of the onshore Asab oil field while the Sahil and Shah Fields Development Project has been awarded to a consortium of Spanish company Tecnicas Reunidas and Greek firm Consolidated Contractors Company (CCC) at a lump-sum price of $ 1.2 bn.

The Asab Field Development, located in a desert area about 220 km south of Abu Dhabi, is one of the key upstream projects recently awarded in the region as the industry push development projects amid falling oil prices and economic uncertainties. Under the 44-month lump-sum contract, Petrofac will provide EPC services to upgrade the production capacity of the Asab field.
The rejuvenationof the Asab field is central to Adco's overall development plan to increase its production and achieve the committed 1.8 mm bpd contributing towards achieving the country's additional production.

In addition to the production capacity upgrade of Asab, Petrofac's 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 current capacity of SAS is 395,000 bpd. Adco plans to ramp up production capacity by 60,000 bpd with outputs of 30,000 bpd from Asab, 20,000 bpd from Sahil and 10,000 bpd from Shah. The SAS project is expected to be completed by 2010.
"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," said Abdul Munim Al Kindy, general manager of Adco.

According to Arab Petroleum Investment Corporation (Apicorp), the UAE is projected to spend nearly $ 12.5 bn crude capacity expansion ventures between 2008 and 2009.
Petrofac's group chief operating officer, Maroun Semaan, said: "The Asab 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. This further reflects the commitments of major oil companies in the region to continue with strategic upstream projects."

Ayman Asfari, Petrofac's group chief executive, said: "This contract represents one of Petrofac's most important project awards to date and is a significant achievement for our Engineering & Construction business."
"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."

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