Adco awards $1.5bn onshore oil and gas deals

02 December 2009

National Petroleum Construction to build production facilities in Abu Dhabi

Abu Dhabi’s National Petroleum Construction Company (NPCC) has won two contracts worth more than $1.5bn to build onshore oil and gas production facilities in Abu Dhabi, according to senior sources close to the deal.

Abu Dhabi Company for Onshore Operations (Adco), the subsidiary of Abu Dhabi National Oil Company in charge of the project, sent a letter confirming the win to NPCC on 29 November, say the sources.

MEED reported in November that contractors bidding on the engineering, procurement and construction (EPC) contracts had named NPCC as the frontrunner to win the deals after submitting the lowest prices in a competitive bid round (MEED 24:11:09).

Adco and NPCC declined to say exactly how much the deals are worth. According to other bidders, NPCC’s prices were “significantly” lower than their own bids.

The deals cover infrastructure upgrades and facilities to increase production capacity at the state-owned energy company’s Bab and Qusawirah oil fields.

The fields are part of Adco’s 1.8 million project to increase the emirate’s onshore oil production capacity by 400,000 b/d to 1.8 million b/d by 2015.

NPCC will build the infrastructure to support the 53 wells Adco is drilling at the Bab field and the 44 wells it is drilling at Qusawirah.

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