SK Engineering wins US$805m ADCO contract
South Korean company to install gas compressor units at Bab oil field
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.