Speedy wins 5 year, $50m deal for ZADCO work
Contract to supply support services on world's fourth largest oilfield
Speedy has announced to the London Stock Exchange this morning that, as a subcontract partner to ESNAAD, the support services arm of Abu Dhabi National Oil Company (ADNOC), it has been awarded a long-term contract to provide logistics, asset management and equipment rental services to support Zakum Development Company's (ZADCO) flagship UZ 750 Project at Abu Dhabi's Upper Zakum field, the fourth largest oilfield in the world.
The contract, which is for an initial period of 5 years with a 2 year extension option, covers the full range of logistics, asset management and equipment rental services required to support drilling and processing activities on four artificial islands which are being constructed by ZADCO.
The use of artificial islands, as opposed to conventional offshore rigs, is to enable the use of land-based drilling techniques to attain ultimate recovery of 70% of the field's proven reserves.
The UZ 750 Project is one of the largest offshore oilfield development projects in the United Arab Emirates and aims to increase oil production from the Upper Zakum field to 750,000 barrels per day and to sustain this level of production for at least 25 years.
The contract is expected to be worth in excess of $50 million in revenues to Speedy over its initial term. Phased mobilisation is to begin shortly.
Commenting on the contract award, Speedy's Chief Executive, Steve Corcoran said: "We are delighted to have been awarded this major asset services contract to support ESNAAD and ZADCO in relation to one of the flagship capital projects in the oil and gas sector in the Middle East region. As a group, we have significant experience over the years of using our technical expertise in major oil and gas infrastructure projects and this, combined with our ability to provide complementary asset management services on a wider basis, has been an important factor in our International Asset Services business securing this major contract."
Darwish Al Qubaisi, ESNAAD's General Manager added: "This is an extremely significant agreement through which ESNAAD, with its technical partner Speedy, will service ZADCO's artificial islands. ESNAAD will execute its vast array of skill and technical expertise to ensure the successful culmination of this ground-breaking project. We look forward to the fruitful and continued cooperation between all parties."