Abu Dhabi National Oil Company (Adnoc) has awarded a $219 million engineering, procurement and construction contract to compatriot National Petroleum Construction Company (NPCC) for work on a key offshore pipeline replacement project.
This is the latest contract in recent rash of orders the state-owned player has placed to upgrade and expand its oil and gas pipeline infrastructure.
National Marine Dredging Company (NMDC) confirmed the receipt of a letter of award (LoA) this week, saying the work involves replacing 125 kilometres of 20 inch oil pipeline running between Umm Lulu and Zirku Island.
NPCC is a subsidiary of Abu Dhabi government-owned NMDC, which is listed on the Abu Dhabi Securities Exchange (ADX) exchange.
The UAE-based contractor is one of the largest offshore EPC players in the Middle East, with a sizeable offshore yard in Abu Dhabi and a fabrication capacity exceeding 100,000 tonnes per year.
A statement issued by NMDC to the ADX said the “award is the latest in a series of accomplishments that serve as a testament to the confidence of investors in the organisation’s performance, as well as in its future plans and expansion.”
Adnoc gas award
NPCC, along with its UAE-based CAT International, also secured a $614 million contract from Adnoc Gas earlier this month.
Adnoc Gas placed multiple contracts in July with UK-based Petrofac and a consortium comprising domestic players National Petroleum Construction Company (NPCC) and CAT for the further expansion of its natural gas pipeline network.
The operator, a subsidiary of Abu Dhabi National Oil Company (Adnoc), earlier confirmed the awards and said the deals worth $1.34 billion have been awarded under the emirate’s “sales gas pipeline network enhancement [Estidama] programme”.
Adnoc is advancing multiple offshore developments as its plans to scale up its oil production capacity to 5 million barrels per day by 2027, up from the current 4.5 million bpd.
The state giant now aims to realise this ambition by 2027, almost three years ahead of its previous 2030 deadline, spurred by improved market fundamentals.
Source: https://www.upstreamonline.com/