Abu Dhabi awards second onshore oil deal

25 March 2010

Local National Petroleum Construction Company wins $560m contract

Abu Dhabi Company for Onshore Oil Operations (Adco) has formally awarded a $560m deal to build new oil and gas production facilities at the Qusawirah field in the south east of the emirate to the local National Petroleum Construction Company (NPCC).

Adco announced the award in a 24 March statement. The engineering, procurement and construction deal covers new oil gathering facilities at the field alongside a degassing station and a crude oil pipeline linking Qusawirah with the nearby Asab oil field. The state onshore oil operator wants to produce 30,000 barrels a day (b/d)of oil from the field by 2013.

The contract is part of Adco’s ‘1.8 million project’ to increase the emirate’s onshore oil capacity by 400,000 b/d to 1.8 million b/d by 2015. NPCC won the $683m deal to increase production at the Bab oil field, which is also part of the scheme, in February, while US/Canadian Veco is overseeing the development of the Bida al-Qemzan field (MEED 9:2:10; 16:2:10). The company will complete detailed engineering design work and order the necessary equipment before appointing a construction contractor on the project.

Adco sent letters telling NPCC that it had won the contracts to develop the Bab and Qusawirah fields in December 2009, but subsequently pushed the company to offer lower prices on both deals. Veco has been working on its element of the project since late 2009.

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