Petrofac wins $2 billion Asab deal

on Feb 9, 2009

Petrofac, the international oil and gas facilities service provider, announced in January
that it has been awarded a US$2.3 billion contract by Abu Dhabi Company for Onshore
Oil Operations (ADCO) for the full development of the onshore Asab oil field.

Under the 44-month lump-sum contract, Petrofac will provide engineering, procurement
and construction (EPC) services to upgrade the production capacity of the Asab field.

Crucially for local upstream players, the project is being pushed ahead at a time when
many contractors have begun to feel the pinch of a cautious start to 2009.

Signalling the green light for the field development project is a clear sign that national oil
companies aren’t retrenching in the face of market blips.

The rejuvenation of the Asab field is central to ADCO’s overall development plan to increase its
production and achieve the committed 1.8 million barrels of oil per day contributing towards
achieving the country’s additional production.

In addition to the production capacity upgrade of Asab, Petrofac’s contract scope includes
upgrading the facility’s capacity to accept increased production from Sahil, Shah and other south
east fields and to upgrade the associated utilities and water handling facilities.

“The Asab field development is one of the largest upstream projects recently awarded in the
region. We are delighted to have secured this significant project, which clearly demonstrates our
competitive position in the Middle East,” said Petrofac’s group chief operating officer, Maroun
Semaan.

“This further reflects the commitments of major oil companies in the region to continue with
strategic upstream projects,” he added.

Abdul Munim Al Kindy, ADCO general manager stated: “This award is a clear indication of Abu
Dhabi’s commitment to achieving its future production targets and such an investment clearly
indicates that the UAE will continue to play an active role in future energy supply.”

The contract represents one of Petrofac’s most important project awards to date. “This is a
significant achievement for our engineering and construction business,” said Commenting on the
award, Ayman Asfari, Petrofac’s group chief executive.

In 2008, Petrofac separately engaged in a joint venture with Mubadala Petroleum Services
Company, and the creation of Petrofac Emirates reinforces our commitment to working in Abu
Dhabi and to establishing a long-term and sustainable business in the Emirate.”
The deal comes hot on the heels of the $543 million lump-sum contract by Kuwait Oil Company
(KOC) for Petrofac. The EPC contract is for a new gas pipeline running from KOC’s Booster Station
131 in North Kuwait to its liquefied petroleum gas plant located at the Mina Al-Ahmadi refinery.

SK Engineering wins US$805m ADCO contract

by Abdelghani Henni on Mar 18, 2009

Abu Dhabi Company for Onshore Operations (ADCO) has awarded a US$805 million contract to
install gas compressor units at its Bab oil field in Abu Dhabi to South Korean company SK
Engineering & Construction.

Seven companies had submitted bids to win the contract including Dubai-based Dodsal; India's
Larsen & Toubro; South Korea's GS Engineering & Construction; Italy's Saipem with Lebanon's
Contracting & Trading (CAT); Paris-based Technip with the local National Petroleum Construction
Company (NPCC); and South Korea's SK Engineering and Construction.

The project is scheduled to be completed in 36 months.

Bab has a design capacity of 420,000 barrels a day (b/d). However, with difficulties in maintaining
reservoir pressure, sustainable capacity is currently 300,000 b/d.

The original tender was cancelled after two bids submitted by a German team of ILF Consulting
Engineers with Siemens, and NPCC with Technip and Germany's Man, came in at up to three times
the initial estimated budget of $600m.

Technip is the front-end engineering and design consultant.

ADNOC subsidiary awards US$818 million contract

by Kevin Baxter on May 3, 2009

After recently announcing that it had US$2 billion to spend on construction contracts, Abu Dhabi
Company for Onshore Operations (ADCO) has awarded a $818 million contract for the engineering,
procurement and construction of its Bab gas compression project in Abu Dhabi to SK Engineering &
Construction.

The contract will last for three years and involves the installation of three gas compression units by
the South Korean company. The contract was signed at a special ceremony by the general
manager of ADCO, Abdul Munim al Kindy, and the president of S.K. Engineering, K.C. Choi.

"This big investment also shows the UAE's commitment to playing an active role in securing future
energy supplies,“ Kindy said.
ADCO is a subsidiary of the Abu Dhabi National Oil Company (ADNOC) that concentrates on
developing onshore oil and gas fields. The gas produced will be fed directly into the UAE’s domestic
network.

The contract for supplying gas compressors was awarded to German company, Man Turbo, by
ADCO.

ADCO awards $80 million Asab and Sahil field work

by Daniel Canty on May 28, 2009

A consortium consisting of GE Oil & Gas and ABB has won two contracts collectively worth more
than $80 million to supply compressors, electrical systems and services for the Abu Dhabi
Company for Onshore Oil Operations (ADCO). The equipment will be used for new gas lift and gas
injection facilities at the Asab and Sahil fields respectively, which are required for each of the two
fields to achieve their production targets.

Owned 60% by the Abu Dhabi National Oil Company and 40% by Shell, Total, BP, ExxonMobil and
Partex, ADCO is aiming to increase its production to 1.8 million barrels per day.

By combining their resources and experience, GE Oil & Gas and ABB were able to win both
contracts against strong competition, offering a broad technology package that meets the oil
production and recovery requirements of the Asab and Sahil projects.

“By leveraging our experience in working with extremely resistant and advanced technology
materials for compressor components, we are able to provide equipment capable of handling the
highly sour and corrosive gas compositions of these fields,” said Joe Mastrangelo, vice president,
turbomachinery for GE Oil & Gas. “Our expertise in gas lifts and gas injection applications gives
ADCO the confidence that our products can meet the challenges of these projects.”

GE Oil & Gas is supplying centrifugal compressors for the gas lift project at Asab and the gas
injection project at Sahil. ABB, a global leader in power and automation technologies, is supplying
the variable speed drive system (VSDS) electrical scope, including motors, transformers and
converters. The projects will be commissioned in the fourth quarter of 2012.

Borouge awards US$1.1 billion contract to Linde

by Abdelghani Henni on Jul 5, 2009

The Abu Dhabi Polymers Company (Borouge), has announced it has awarded a contract worth US$
1.1 billion to German gases and engineering company the Linde Group, to build another 1.5 million
tonnes per year (t/y) ethane cracker at its production site in Ruwais, Abu Dhabi, United Arab
Emirates.

“The awarding of this contract confirms Borouge’s commitment to the Borouge 3 project, a major
expansion of our production facility in Ruwais, which will increase the total capacity of the plant to
4.5 million tonnes of polyolefins annually by the end of 2013,” Abdulaziz Alhajri, CEO of Borouge
said.

“In addition to the ethane cracker, the expansion includes the construction of second generation
Borstar polypropylene and polyethylene units, a low density polyethylene unit and a Butene unit,
as well as related off-site utilities and marine facilities,” he added.

"Nowhere else in the world has a petrochemical company installed so much olefins capacity in such
a short time as Borouge is currently doing in Abu Dhabi,” Dr Aldo Belloni, member of the executive
board of Linde AG said.

“We at Linde Engineering are proud to be the supplier of ethylene technology for the Ruwais
complex. Our relationship with ADNOC, enriched by our gases joint venture ‘Elixier‘, and Borealis is
now stronger than ever."

The contract will be executed on a ‘lump sum turnkey’ basis whereby the construction work will be
executed by the Consolidated Contractors Company (CCC). The new cracker, the third of its kind to
be built by the German contractor for Borouge in one decade, complements the 600,000 t/y and
1.5 million t/y ethane crackers, the latter of which is currently under construction as part of the
plant’s expansion from 600,000 to 2 million t/y of polyolefins by mid-2010, and ultimately 4.5
million tonnes of polyolefins annually by 2013.

After completion of the new cracker, Borouge will have the world’s largest ethane cracker complex,
setting a new benchmark for the industry.

ADNOC JV awards Borouge contract to Tecnimont

by Kevin Baxter on Jul 6, 2009

Borouge has announced that it has awarded the three main contracts for the front-end engineering
and design (FEED) stage of its Borouge 3 expansion to Tecnimont in a deal worth US$22 million.

The Italian company will carry out the FEED of the multiple polyolefin units, the LDPE (low density
polyethylene) unit and the utilities and offsite facilities. The contract will last for around nine
months.

The announcement follows the recent selection of Bechtel as the project management support for
Borouge 3, located in Ruwais, Abu Dhabi.

Borouge is expanding its annual production capacity of polyolefins in Abu Dhabi to 4.5 million
tonnes by the end of 2013. The company is a joint venture between the Abu Dhabi National Oil
Company (ADNOC) and Borealis, a leading provider of chemical and plastics solutions.

GASCO awards $9.2bn contracts for IGD Project

by Kevin Baxter on Jul 16, 2009

Abu Dhabi Gas Industries Ltd. (GASCO), has confirmed that it has awarded contracts worth a total
of US$9.2 billion for engineering, procurement, construction and commissioning (EPC) works for the
Integrated Gas Development (IGD) Project to be built at Habshan and Ruwais in Abu Dhabi.

GASCO, a subsidiary of state-owned hydrocarbons giant Abu Dhabi National Oil Company (ADNOC)
said that the four packages were awarded on a lump sum turn key basis and will cover the
construction of a process plant, utilities and offsites, the Ruwais fourth natural gas liquids (NGL)
train and Ruwais storage tanks.

A joint venture between the contractors JGC of Japan and Tecnimont of Italy were awarded the
process plant contract which is worth a total of $4.7 billion.

This is the third contract Tecnimont has won in the MENA region this month after securing a $61.5
million contract with Sonatrach in Algeria and a $22 million FEED contract with an ADNOC joint
venture Borouge.

The $1.7 billion offsites and utilities contract was awarded to Hyundai Engineering & Construction
of South Korea.

Petrofac continue its run of big contract awards in 2009 by being awarded the $2.1 billion Ruwais
fourth NGL train contract. The UK-based company will carry out the works in a joint venture with
South Korean outfit GS Engineering.

The Ruwais storage tanks package was US company CBI and is worth a total of $530 million.

GASCO said in a statement that the initial phase of the projects will commence from the respective
contractors' home offices before moving to the respective sites at Habshan and Ruwais for
construction activities. The completion dates for all works is the third quarter of 2013.

The IGD Project will be built at a new location in Habshan titled Habshan 5. The site will house four
gas processing trains with a combined processing capacity of 2 billion standard cubic feet per day
(scfd) of gas.

Of this, 1 billion scfd of gas will be transferred to the offshore oil field of Umm Shaif via Das Island
and pumped into the field to increase production.

The rest of the gas will be sold domestically in the UAE.

GASCO said that the projects will create around 30,000 jobs at the peak of construction activities.

The IGD Project, will also provide a permanent link between offshore and on shore facilities of
ADNOC and will provide operational flexibility for oil and gas production.

ADNOC subsidiary signs $402 million gas contract

by Kevin Baxter on Jul 23, 2009

Abu Dhabi Marine Operating Company (ADMA-OPCO) has announced that it signed a contract
worth $402 million for the engineering procurement and construction (EPC) of the Integrated Gas
Development Project –Habshan Platform (IGD-HAP) with the National Petroleum Construction
Company (NPCC).

IGD-HAP is the first package of several offshore and onshore packages of the multi billion dollar
Integrated Gas Development Project (IGDP). The IGDP is a strategic initiative of the Abu Dhabi
National Oil Company (ADNOC) to process and supply gas to meet the growing needs and
development plans of Abu Dhabi.

“This challenge would not have been met but for the ambition, vision, leadership and support of
ADNOC to utilize the best prevailing market conditions as golden opportunity for investment,” Ali
Al-Jarwan, ADMA-OPCO GM said.
ADMA-OPCO’s responsibilities towards the project includes the offshore portion of gas production
by drilling additional gas wells and processing platform at Umm Shaif for gas dehydration and
transfer to Das Island through the new 46” 38 km main gas line to be laid under this contract.

Other contracts for the IGDP worth a total of $9.2 billion were awarded last week by Abu Dhabi Gas
Industries Ltd. (GASCO). Both ADMA-OPCO and GASCO are both subsidiaries ADNOC.

NPCC is also a state-controlled company in Abu Dhabi.

Technip scoops $408 million Gasco contract

by Arabian Oil & Gas Staff on Nov 17, 2009

Abu Dhabi Gas Industries (Gasco) has awarded a Dh1.5 billion ($408.4 million) gas development
contract to France's Technip, reports Reuters.

The contract is for engineering, procurement and commissioning (EPC) work on Gasco's 'Asab 3'
project, which will be completed in the third quarter of 2012, the firm said in a statement.

Gasco has already awarded about $9 billion for major gas projects in the Gulf emirate. Gasco is 68
per cent owned by the Abu Dhabi National Oil Company (Adnoc), with the rest held by Royal Dutch
Shell, Total and Partex.

The 'Asab 3' project is being developed to process an additional 150 million cubic feet per day of
associated gas from the existing Asab, Shah and Sahil oil fields.

'The Asab 3 project will facilitate increased oil production from new ADCO facilities which are
presently under development,' Gasco said in a statement. ADCO is the Abu Dhabi Company for
Onshore Oil Operations, the onshore division of Adnoc.

Gasco said last year it was investing $25 billion in gas processing plants and pipelines to meet
surging gas demand.

South Korean group wins $40bn UAE nuclear

deal
by Amena Bakr on Sunday, 27 December 2009
A South Korean consortium won a $40bn deal to build and operate four nuclear
reactors for the UAE, beating US and French rivals to one of the Middle East's
biggest ever energy contracts.

Under the deal announced on Sunday, the first nuclear plant in the Gulf Arab region is
scheduled to start supplying power to the UAE grid in 2017.
"This deal is the largest mega-project in Korean history," said a statement from the
South Korean president's office.
"It is more than six times bigger than the previous single contract."

Led by state-owned utility Korea Electric Power Corp (KEPCO), the consortium will
design, build and run four reactors with capacity to produce 1,400 megawatts each of
electricity.

The contract to build the plants is worth around $20bn, and the consortium expects to
earn another $20bn by jointly operating the reactors for 60 years.

Work on the first nuclear plant in the Gulf Arab region is expected to begin in 2012, and
all four reactors are due to be completed by 2020.

The UAE, the world's third-largest oil exporter, needs the nuclear power to help meet an
expected rise in electricity demand to 40,000 MW in 2020 from around 15,000 MW last
year, amid a petrodollar-fuelled economic boom.

South Korea hopes to build more plants beyond 2020 as the UAE looks to construct more
reactors to meet future demand.

"Considering the growth estimates in the UAE's power demand, South Korea expects to
win additional projects to build nuclear power reactors in addition to this contract for four
reactors," the statement said.

The KEPCO-led consortium includes Hyundai Engineering and Construction, Samsung

C&T Corp, Doosan Heavy Industries, and US-based Westinghouse Electric, a unit of
Japan's Toshiba Corp, the statement said.

South Korean President Lee Myung-bak was in the UAE to sign the deal with UAE
President Sheikh Khalifa bin Zayed al-Nahayan.

The South Korean group beat a French consortium and another group led by US giant
General Electric.

The $20bn Korean bid to build the four plants was $16bn lower than the bid submitted
by the French group, an industry source said.

"We were impressed by the Korean consortium's world-class safety and its demonstrated
ability to meet the UAE program goals," said Mohamed al-Hammadi, CEO of the Emirates
Nuclear Energy Corporation (ENEC) in a separate ENEC statement.

The choice of South Korea surprised some analysts, who had expected the deal to go to
one of the other consortiums for strategic reasons.

"The UAE's choice must have been based on strictly commercial terms because in terms
of political clout in the region it's nil," said Al Troner, president of Houston-based Asia
Pacific Energy Consulting.

"Korea has a good track record in terms of safety and price and it's a surprise to see the
US and France are not part of the bid because they are the ones with the more political
strength in the Middle East."

Nascent nuclear programmes in the Middle East, including in Saudi Arabia and Egypt,
have fuelled concerns of a regional arms race.

But the UAE has already pledged to import the fuel it needs for reactors -- rather than
attempting to enrich uranium, the fuel for nuclear power plants -- to allay fears about
uranium enrichment facilities being used to make weapons-grade material.

Iran has long been at odds with the West over its declared plans to use enriched
uranium to generate electricity, a programme the United States and European allies fear
is a cover to develop the ability to produce atomic bombs.

The emirate of Abu Dhabi, which is driving the UAE nuclear programme, holds most of
the UAE's crude reserves, and has managed to avoid the worst of the global economic
slowdown as well as the debt crisis that has hit neighbouring Dubai.

Dubai's debt had cast a shadow over financing prospects for other Gulf borrowers but
analysts expect blue-chip names like Abu Dhabi and Qatar to weather the fallout.

"These are long-term projects and many of the finance providers will look beyond what
is happening today," said John Sfakianakis, chief economist at Banque Saudi Fransi-
Credit Agricole Group in Riyadh. "The UAE's nuclear programme is a strategic project."

He said the UAE could issue bonds in future to fund the project, in addition to the usual
mix of project financing methods such as export agencies and banks.

"I think by the time they do this (issue bonds), the Dubai storm will be over, plus Abu
Dhabi would have a substantial windfall from oil revenues," he said. (Reuters)

ABB awarded $21m contract for ADCOP project in UAE

by Kevin Baxter on Jan 7, 2010

The Switzerland-based technology group ABB has announced that it has signed a deal worth US$21
million with the contractor China Petroleum Engineering & Construction Corporation (CPECC) that
will see the company design and supply a state-of-the-art integrated electrical system for the $2.3
billion Abu Dhabi Crude Oil Pipeline (ADCOP) project.

In a statement released to the press, the company said that the scope of work will see ABB supply
a range of electrical equipment, including 33kV gas-insulated switchgear, ring main units, capacitor
banks and resistors. ABB will also deliver, protection panels, fault monitoring systems and
substation control and monitoring systems.

"As a proven performer in the oil and gas industry, ABB is proud to be a part of this landmark
project in the UAE," Bjarte Pedersen head of the Process Automation Division in the Middle East
and Africa for ABB, said.
"Our comprehensive automation system will help the owner, International Petroleum Investment
Company (IPIC), get the maximum value out of their control system investment, while providing a
secure evolution path forward to help them maintain their competitiveness and reach their
productivity targets in the years to come," he added.

With a length of 400km and a diameter of 48 inches, the pipeline from Habshan in Abu Dhabi,
which links to the Abu Dhabi Company for Onshore Oil Operation (ADCO) facility, will transport an
estimated 1.5 million barrels of crude oil per day to the main terminal in Fujairah in the northern
Emirates.

The pipeline will develop a reliable export capability on the eastern seaboard of UAE and reduce
shipping congestion in the Strait of Hormuz, the narrow waterway through which Persian Gulf oil
producers ship their crude exports.

Construction on the fast track project began in early 2008 and is scheduled to be completed by
August 2011.

IPIC is a sovereign wealth fund attached to the Abu Dhabi government that specialises in investing
in oil and gas projects for the emirate

Abu Dhabi awards $300m Shah gas work - paper

by Reuters on Saturday, 06 March 2010
Abu Dhabi and ConocoPhillips have awarded a AED1.1bn dirham ($300m)
construction contract for their Shah gas project to Al Jaber Group, Emirati
newspaper Al Ittihad reported on Saturday.

Last month, local media reported the joint venture was planning to award around $10
billion of contracts in the first half of 2010 to develop the sour gas field.

The two parties would sign the final contract soon, Al Ittihad quoted a source as saying.

Abu Dhabi signs $560m oil field deal with NPCC

by Amena Bakr on Tuesday, 23 March 2010

The onshore division of state run Abu Dhabi National Oil Co (ADNOC) signed a
$560.4 million oilfield development contract with the UAE's National Petroleum
Construction Company (NPCC), ADCO said on Tuesday.

The project is to develop infrastructure at the Qusahwira oilfield, ADCO said. It would
include building an oil gathering system and a pipeline to the Asab field, ADCO added.
The company plans to add 30,000 barrels per day (bpd) from the first phase of
development of the Qusahwira oilfield by 2013. ADCO aims to boost its output capacity
to 1.8 million bpd from around 1.4 million bpd

The expansion is part of a wider plan for the world's third largest oil exporter to boost
capacity to around 3.5 million bpd in 2018 from around 2.8 million bpd.

NPCC beat six other bidders to the deal, awarded by Abu Dhabi Company for Onshore Oil
Operations (ADCO). The field is located south east of the UAE's capital Abu Dhabi.
(Reuters)

ADCO awards NPCC Bab field contract

by Peter Ward on Feb 17, 2010

Abu Dhabi Company for Onshore Operation (ADCO) has awarded an EPC contract to National
Petroleum Construction Company (NPCC) to carry out works on Bab Field as part of Phase 1 of
ADCO’s 1.8 million barrels of oil per day (MMBOPD) Project.

The 1.8 MMBOPD Project aims to raise ADCO’s crude oil production from 1.4 MMBOPD through an
increase in production at the North East-Bab oil field and the commencement of production at
three new oil fields.

Production at Bab field will be increased through developments at the Habshan-2 and Thamama-G
zones.

NPCC will carry out EPC work related to production wells tie-ins and flow lines connection
production wells to four new RDSs associated with several transfer lines. The firm will also work on
tie-ins of 54 water injection wells, a total of 950km pipelines, separators, vessels, tanks, heaters,
various pumps, flare stacks and other components.

Hyundai, Samsung get $5.59bn UAE plant order

by Sangim Han on Monday, 29 March 2010

Hyundai Engineering & Construction and Samsung C&T have won a $5.59bn
order to build nuclear-power plants in Abu Dhabi.

The companies plan to complete the plants by May 2020 for Korea Electric Power Corp,
Hyundai Engineering and Samsung C&T said in regulatory filings today. Hyundai
Engineering will get 55 percent of the order and Samsung C&T the remaining 45 percent.

Korea Electric won the order from the UAE in December. (Bloomberg)