The value of contracts awarded in Abu Dhabi’s hydrocarbons sector is expected to see an upturn in 2012, albeit still far behind the peak of activity in 2009.

According to data from Middle East projects tracker MEED Projects, Abu Dhabi’s oil, gas and petrochemicals companies awarded $2.69bn in engineering, procurement and construction (EPC) contracts in 2011.

This year, the total value of EPC contracts is expected to be about $8.39bn, based on revised budgets for contracts due to be awarded over the course of the year.

Driving the upturn is a $5bn investment by Zakum Development Company (Zadco) to develop the offshore upper Zakum field.

Zadco, which is 60 per cent owned by Abu Dhabi National Oil Company (Adnoc), is aiming to increase oil production at the upper Zakum field to 750,000 barrels a day (b/d) from the current 500,000 b/d by 2015.

The company has split the tender into two contracts known as EPC1 and EPC2, which carry respective revised budgets of $800m and $4.2bn – making up the bulk of the total value forecast for 2012.

The investment upturn is also fuelled by several offshore developments backed by Abu Dhabi Marine Operating Company (Adma-Opco) including the Umm al-Lulu and Sarb full-field developments. EPC contracts worth $1.55bn are expected to be awarded for these projects during 2012.

Although marking an upturn, the total $8.39bn of contracts expected to be awarded in 2012 is still significantly short of 2009 and 2010, when the values reached $30.21bn and $12.98bn respectively.

Major expansions across the emirate’s oil, gas and petrochemicals sector were implemented in 2009,including more than $9bn awarded to EPC contractors by both Abu Dhabi Gas Industries (Gasco) and Abu Dhabi Oil Refining Company (Takreer).

In the same year, Chinese contractors won a $3.29bn bid to engineer and construct the Abu Dhabi crude oil pipeline (Adcop) for Abu Dhabi Independent Investment Company (Ipic).

This one contract was higher in value than the total value of deals in 2011, when only one contract was awarded worth in excess of $500m.

In the six years from 2006, EPC contracts have been awarded to 58 different bidders, including single companies and bids between two or more contractors.

Assuming that joint contracts are divided evenly between the partner companies, the biggest winner over this period was South Korea’s GS Engineering and Construction Corporation.

The company won an estimated $5.98bn in contracts over the past six years. It was closely followed by fellow South Korea-based group Samsung Engineering, which signed contracts totalling $5.29bn in the hydrocarbons sector.

At the same time, Italy’s Saipem, UK-based Petrofac and Abu Dhabi’s National Petroleum Construction Company all won contracts totalling more than $3bn since 2006.