Descon Engineering has been awarded a contract for water storage and re-injection facilities at the onshore Sahil oil field in Abu Dhabi, according to a source familiar with the deal.
The Pakistan-based company was awarded the AED60m ($16m) engineering, procurement and construction (EPC) contract by field operator Abu Dhabi Company for Onshore Petroleum Operations (Adco).
The project will enhance and upgrade the existing water storage and re-injection facilities at the onshore field, which is part of Adcos South East Asset.
Under the contract, Descon will install a storage tank, pumps, piping and associated facilities.
The project is part of the ongoing expansion of Adcos South East Asset oil fields, including the Sahil, Mender and Qusahwira fields.
Adco is expected to award an EPC contract for the full field development of the Mender field later this year. China Petroleum Engineering & Construction Corporation(CPECC) has emerged as the frontrunner to win the deal with a low bid of $297m.
Adco has now asked companies to submit technical EPC bids for phase 2 of the Qusahwira field development in June 2015, according to a source close to the tendering process.