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ADCO lets contract for Oil Process

Abu Dhabi Co. for Onshore Oil Operations ADCO, through a subcontractor, has let a contract to Al Hassan Engineering Co. Abu Dhabi LLC to provide work related to increasing crude oil processing capabilities as part of ADCO’s Phase 3 development of onshore Rumaitha and Shanayel fields in United Arab Emirates’ Northeast Bab asset.

Under the contract, which was awarded by South Korea’s GS Engineering & Construction Corp. (GSEC), Seoul, Al Hassan Engineering will deliver structural, mechanical, and piping (SMP) works related to the third-phase expansion of an oil processing plant and related infrastructure for the Rumaitha and Shanayel fields, the service company said in a Mar. 9 filing to Oman’s Muscat Securities Market.

Al Hassan Engineering’s work on the project is scheduled to begin in June 2015 and will run for 17 months, the company said.

The SMP contract is valued at $26.6 million, Al Hassan Engineering said.

This most recent contract follows ADCO’s previous award of an engineering, procurement, and construction (EPC) contract to a consortium of GSEC and a subsidiary of Dodsal Group, Dubai, for the Phase 3 development of Northeast Bab, according to a May 20, 2014, filing with the Korea Exchange.

Under the $1.44 billion EPC contract, GSEC and Dodsal Engineering & Construction PTE will provide work related to a 39,000-b/d expansion of ADCO’s Rumaitha central processing plant, as well as construction of additional associated infrastructure and installations.

The project scope includes additional wells and flow lines, the replacement and modification of existing processing and transportation installations, as well as the construction of new surface installations that will help to increase ADCO’s sustainable production targets via enhanced oil recovery from 2017, according to a project description posted to ADCO’s website on July 8, 2014.

GSEC’s responsibilities will involve Rumaitha’s central processing plant, including work related to oil separation and storage; low-pressure, medium-pressure, high-pressure gas compression; water treatment installations; and utilities, the service company said in a May 20, 2014, release to investors.

Dodsal will be responsible for work involving a 133-km oil-gas export pipeline, a 270-km gas-water-production pipeline, new clusters and well tie-ins, a geographical information system, a substation, and 33-kv overhead lines, according to GSEC.

Scheduled to be completed by first-quarter 2017, the project will expand sustainable oil production from Rumaitha and Shanayel fields to 85,000-b/d from a current 46,000 b/d, ADCO said.


Source: O&G Journal

Link: http://tinyurl.com/ow5ggpw