Adco invites fresh interest in Bab deal

20 March 2008
Abu Dhabi Company for Onshore Oil Operations (Adco) is to issue fresh prequalification documents for the retendered contract to install gas compressors at its onshore Bab field in May.

The client is retendering the $1-1.5bn project after the original two bids, submitted by a German team of ILF Consulting Engineers and Siemens, and Abu Dhabi-based National Petroleum Construction Company with Paris-based Technip and Germany's Man, came in substantially over budget.

Sources close to the deal say the bids were two to three times the original $600m budget. To lower the cost and speed up the project, Adco says it will now procure long-lead items such as gas compressors.

Prequalification documents are expected to go to contractors by 31 May. In an effort to achieve greater competition, more contractors will be invited to participate, with South Korean contractors expected to feature heavily.

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