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.

 

Push on IS capital Raqqa gathers momentum

Ailing Bouteflika 'doing well' despite health scare

Iraq forces look to build floating bridge in Mosul

Boosting presidental powers will 'stabilise' Turkey, says PM

Film on Syria's White Helmets wins Academy Award

Shia leadership struggle ahead after Khamenei and Sistani

Morocco to withdraw from Western Sahara tension zone

The huge risks of Trump’s call to ‘take’ Iraqi oil

Trump set to zero in on Hezbollah in bid to curb Iran

Time bomb of unemployment among Arab youth

Woman journalist says targeted by hardliners in Sudan

Iran's Ahmadinejad writes open letter to Trump

Iran's Rouhani to run for re-election

Kurdish reporter killed while covering Mosul battle

Libya govt secures ceasefire after Tripoli clashes

Saudi Foreign Minister in landmark visit to Iraq

Iraqi forces push deeper into west Mosul

Suicide attacks kill 42 in Syria's Homs

Top US commander in secret Syria trip

Israel to deny Human Rights Watch visas for being ‘biased’

UN considers Syria sanctions over chemical attacks

Saudi Comic-Con slammed as ‘sin’ in online backlash

Jordanians protest government price hikes

Baghdad coordinated anti-IS airstrikes with Damascus says source

New Hamas Gaza leader makes first public appearance

Palestinian protestors clash with Israeli soldiers in West Bank

Jordanian F-16 crashes in Saudi, pilot survives

Suicide bomb attack on rebels kills 51 near Al-Bab

Iraqi PM says air force strikes IS targets in Syria

Iraqi forces enter IS-held west Mosul

UN slams light sentence for Israeli soldier

Saudi king seeks investment on rare Asia tour

UN Syria peace talks begin in Geneva

Saudi minister discusses hajj with Iran

136 Turkish diplomats, soldiers seek German asylum since coup

New Hamas ‘strongman’ could spell fresh Israeli conflict

Suicide car bomb kills eight outside Yemen army base

Fired Turkish academics protest ‘unjust’ dismissals

Iraqi forces jovial after Mosul airport entry

Syrian rebels announce capture of flashpoint town from IS

Iraqi forces enter IS-held Mosul airport

Swedish citizen jailed for IS Facebook post

Somalia names new prime minister

Netanyahu backs pardon for Israel soldier who shot Palestinian

UN envoy meets Syrian rivals, hopes of breakthrough slim