The Abu Dhabi Marine Operating Company (ADMA-OPCO) has signed an $885m dollar Engineering, Procurement and Construction (EPC) contract with the National Petroleum Construction Company (NPCC).
The deal was announced to the press at the World Future Energy Summit (WFES) in Abu Dhabi. It focuses on the first phase of the Lower Zakum Oil Lines Replacement Project.
ADMA-OPCO are attempting to increase production capacity at the Lower Zakum Field as part of an initiative to raise the company’s production from 600,000 bpd to 1 mbpd by 2020. This ties in with ADNOC’s overall production target of 3.5 mbpd by 2020.
“It is our pleasure to have NPCC with us in this highly significant project. In this particular project, NPCC have demonstrated their competitive edge in terms of pricing, schedule and willingness to do the project. We assure them of our maximum cooperation to do the job successfully.” said Ali Al-Jarwan, chief executive officer of ADMA-OPCO.
The first phase of the Zakum Oil Lines Replacement Project will involve approximately 90 km of oil pipeline replacement and associated wellhead tower modification.
Al-Jarwan also confirmed that the project meets Abu Dhabi National Oil Company’s (ADNOC) guidelines for sustained oil production, under ADNOC’s code of practice on environmental management.
This is the third deal to be struck between the two companies within the last 12 months, following the award of the UMM LULU Package 1 and 2. NPCC chief executive, Aqeel Madhi, signed the deal on behalf of NPCC.
“We are delighted to continue our partnership with ADMA-OPCO in one of the most challenging projects. Taking part in this project puts us in a very good position to address some of the unconventional and complex issues which require a high level of professionalism and expertise,” he said.
