First Published: 2013-07-21

 

UAE leads MENA region in value of energy contracts

 

Two major projects on Umm al-Lulu offshore oil field development could add further $2bn to total value of investments in UAE energy sector.

 

Middle East Online

Enormous potential

ABU DHABI - The UAE leads the MENA region in value of contracts awarded in the oil and gas sector with Zakum Development Company (ZADCO) awarding a huge $3.7bn contract on the development of the offshore Upper Zakum field.

The contract is more than 50% of the total $6.7bn worth of engineering, procurement and construction (EPC) deals awarded so far in the region in the second quarter of 2013.

The ground-breaking Upper Zakum Field Development project has a total budget of around $15.6bn.

These developments mark a critical stage in the UAE's push to expand its offshore output to new fields. Equally important, however, is the country's push to optimise oil production, sustainability and innovation through successful integration of new and expanding projects. These developments will be discussed in-depth at the forthcoming UAE Oil and Gas Greenfield Projects Conference on September 10-12, 2013 at the Sofitel Hotel in Abu Dhabi.

"One of the key factors that has a significant impact on successful project execution and commissioning is the integration of oil and gas project infrastructure with technology. This conference aims to bring the entire value chain involved in the oil and gas projects sector together to discuss challenges and solutions for new projects in the UAE and the way forward. We hope encourage co-operation within the sector to boost the quality of projects execution," said Edmund O' Sullivan, Chairman, of MEED Events, organisers of the conference, which will gather high level participation from government and semi-government entities, financiers and investors, contractors, project managers and international operators and developers.

One of the highlights of the conference is a dedicated session reviewing the UAE oil and gas sector's involvement with outward investment, including critical updates on strategies as to how it intends to further diversity its regional projects.

According to Middle East projects tracker MEED Projects, if contracts are awarded as expected, this quarter could be the biggest-spending period since the final quarter of 2011, with several major projects moving towards the construction phase. Since then, contract awards for each subsequent quarter have hovered between $5bn and $10bn, with spending dominated by Saudi Arabia, UAE, Iraq and Iran.

In the UAE, two major projects on the Umm al-Lulu offshore oil field development could add a further $2bn to the total value of investments in the oil and gas sector in the emirates. The first package has already been awarded to Abu Dhabi's National Petroleum Construction Company (NPCC), while the second package is still to be decided after an NPCC-Technip consortium and South Korea-based Samsung Engineering were asked to resubmit bids in April.

The only other billion-dollar-plus contract in the MENA region so far in the second quarter was Qatar Petroleum (QP) awarding a deal to Taiwan's CTCI and Japan-based Chiyoda Corporation, This was for the $1.2bn expansion of its Ras Laffan refinery.

Preceding this event is a conference that focuses on rehabilitating ageing oil and gas fields throughout the region. The 4th Annual Middle East Brownfield Projects Conference will be held on September 9, 2013 in Sofitel Hotel in Abu Dhabi where experts will share insights and strategies to rehabilitate aged fields, using modern technologies.

"There is an enormous potential for contractors looking to work on rehabilitation, upgrade and modification schemes in the GCC. This clearly defines the Middle East's brownfield market as one of the region's high potential markets. The Middle East Brownfield Projects Conference will focus on specific challenges and opportunities over the next 12 months," continued O' Sullivan.

 

Erdogan seeks to defuse standoff around Turkey’s Qatar

Arab League accuses Israel of 'playing with fire' at holy site

Syria warplanes strike near Damascus despite ceasefire

600,000 Yemenis expected to contract cholera in 2017

Foreign food chains hoping for taste of Iran market

US warns Iran over imprisoned Americans

Kuwait protests to Lebanon over Hezbollah training

30 extremists in Sinai operations

Three Palestinians shot dead in Jerusalem

Nearly 360 injured in Turkey by magnitude 6.7 quake

UN says Saudi to blame for deadly Yemen strike on civilians

Police fire tear gas to disperse Morocco protest

Germany reviews arms sales to Turkey

Hezbollah launches Syria border operation

China calls for Gulf crisis talks

Israel bars men under 50 from Jerusalem Old City prayers

Intensifying Jihadist-rebel clashes in Syria's Idlib

Saudi King sets up new state security agency

Rebel ambush kills 28 regime fighters near Damascus

Turkey slams 'dangerous' Cyprus energy plans

Saudi prince 'arrested over leaked abuse videos'

Israel boosts 'security measures' as Al-Aqsa tensions simmer

Kuwait expels Iranian diplomats over 'terror' cell

Germany vows to overhaul Turkey ties as row escalates

Home cooked meals a relief for fighters in Syria's Raqa

US maintains designation of Iran as top 'state sponsor'

US halting support for Syria rebels

30 civilians dead in anti-IS strikes in Syria

Palestinian civilians urge ICC to speed up probe

Turkey PM opts for stability in light cabinet reshuffle

UN aid flight carrying journalists barred from Yemen

Former IS slaves fight for revenge in Raqa

US, Iran trade tit-for-tat sanctions

20 Yemeni civilians killed in air strike

14 killed in opposition infighting in Syria's Idlib

Morocco sentences 25 to prison over W. Sahara killings

Egypt police kill top militants

Heavy rainfall hits Istanbul causing transport chaos

Palestinians protest Israeli security measures at Al-Aqsa compound

Saudi police question woman who wore miniskirt

Rebels, US-backed Kurds clash in northern Syria

Netanyahu says Hungary is 'standing up for' Israel

Lebanon army to launch operation near Syria border

Morocco delays currency reform amid speculation

Iran parliament vows to fight US 'adventurism'