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New UAE and Kuwait project awards gather momentum August activity bonanza led by Petrofac pipeline deal and ADNOC’s field programmes Last month saw a flurry of project awards across the Middle East, with two major upstream projects bursting out of Abu Dhabi. ADNOC’s major development programmes at Zakum and Asab stole much of the limelight in the UAE, and a US$404 million EPC deal from Kuwait dominated news from the northern Gulf. Petrofac announced in late July that it had been awarded the $400 million-plus contract by Kuwait Oil Company (KOC) for EPC services for the installation of fuel gas and gas oil pipelines. Work began in August. The project, with an anticipated duration of 23.5 months, will include a fuel oil pumping station, metering systems, utilities systems and associated electrical, instrumentation and telecommunication works, for the pipelines from Mina Al Ahmadi to the Azzour and Shuaiba Power Stations in Kuwait. “The Kuwait market is strategically important to our business and I am delighted that we have been selected by KOC to undertake this project. We maintain an excellent working relationship with KOC and look forward to strengthening this further as we move into the execution phase of this project,” said Maroun Semaan, Petrofac’s group chief operating officer. In Abu Dhabi, ABB confirmed it had won orders worth a total

Veli-Matti Reinikkala, head of ABB’s Process Automation division

Maroun Semaan, Petrofac’s group chief operating officer.

of $24 million from Petrofac to design and deliver power infrastructure, systems and automation equipment for the Asab Full Field Development Project. Led by the Abu Dhabi Company for Onshore Oil Operations (ADCO), the Asab development is one of the largest upstream projects in the region. Petrofac International is the EPC contractor for the project. The rejuvenation of the Asab field is central to ADCO’s overall development plan to increase its production to 1.8 million barrels of oil per day. In addition to the production capacity upgrade of Asab, Petrofac’s EPC scope includes upgrading the facility’s capacity to accept increased production from Sahil, Shah and other south eastern fields. “ABB is proud to be a part of this important project that will mark the country’s active role in

future energy supply,” said VeliMatti Reinikkala, head of ABB’s Process Automation division. ABB will design and supply a host of power equipment, including air-insulated mediumvoltage switchgear and power transformers. The delivery includes a substation monitoring and control system and integrated motor control system, which covers nine substations and one central control building. Moving offshore, Mott MacDonald was commissioned in August by Zakum Development Company (ZADCO)

as front end engineering and design (FEED) consultant to replace diesel generators at Arzanah Island, and work is already under way. “The only way to access Arzanah is by fixed wing aircraft for people, or supply boats for shipments, so replacing generator equipment and power management systems is not straightforward,” explained Alex Jacob, Mott MacDonald’s project director. Arzanah Island has water injection facilities as well as utility and accommodation loads and requires around 3.5 to 4 megawatts of power. As natural gas is not available on the island, power turbines are operated on liquid fuel (diesel). To reduce fuel consumption, ZADCO had replaced some of its turbines with high speed diesel generators. The high speed generators proved to be more fuel efficient but operated with recurring problems and major breakdowns. Capital outlay for both phase one and phase two of the project will be around $18 million.

US $404 m

Estimated value of Petrofac’s contract by Kuwait Oil Company (KOC) for EPC services for the installation of fuel gas and gas oil pipelines. Source: Petrofac International

September 2010 Oil&Gas Middle East


Oil & Gas Middle East - Sept 2010  
Oil & Gas Middle East - Sept 2010  

Oil & Gas Middle East - Sept 2010 - ITP Business