The state-owned energy giant Abu Dhabi National Oil Company (ADNOC) has finally given contractors something to smile about after the news gathering agency Reuters reported that the onshore subsidiary of the company is ready to award around US$2 billion worth of construction contracts.
The general manager of the Abu Dhabi Company for Onshore Oil Operations (ADCO), Abdul Munim Al Kindy, said that the current low prices for both construction and raw materials have played a major role in the decision.
“Definitely the (falling) cost of construction has had a positive impact,” Reuters reported Kindy as saying.
“Bids have become cheap resulting in big savings for us… almost 50 percent,” he added.
Reuters also reported that Kindy said ADCO has ambitious growth plans in regards to oil production and aimed at increasing output to 1.6 million barrels per day (bpd) by 2012 and 1.8 million bpd by 2016.
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