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.

 

Iraq operation to liberate Anbar faces barrage of criticism

Yemen shelling kills two Saudi border guards

Nusra Front chief pledges no attacks on West

Kerry set to launch final diplomatic push for Iran nuclear talks

Arrest of several FIFA leaders as part of twin corruption inquiry

Blair resignation widely welcomed by Palestinians

Qatar pledges $50 mn to Indonesia for sheltering Rohingya migrants

Al-Jazeera interview with Nusra leader draws criticism

Palestinians 'open' to every scenario on FIFA vote on Israel

Iran defends spy trial of US journalist

Iraq exhumed remains of 470 bodies from Tikrit mass graves

Coalition raids target headquarters of rebel troops in Yemen capital

EU calls for resumption of Palestinian-Israeli peace talks

Fast pace of executions in Saudi Arabia 'very disturbing'

Tunisia begins hearings into ex-regime's rights abuses

‘Islamic State’ executes 20 men in ruins of Syria ancient city

Saudi Arabia announces sanctions against two Hezbollah leaders

Libya to fight aggression with 'strength'

Iran says nuclear talks could go beyond deadline

Hamas accused of committing war crimes against civilians

German court rejects Yemenis' case over US drone killings

Kuwait emir urges Muslim states to fight extremism

NY Times journalist has Turkish citizenship revoked

Military site inspections necessary to Iran deal

Iraqi forces on outskirts of Ramadi

Syrian refugees ignored at Turkey poll campaign

Director 'shocked' at Morocco’s prostitution film ban

Libya PM survives assassination attempt

US criticises Shiite name of Iraqi military operation

Israel warplanes strike Gaza after rocket attack

Pro-government fighters retake Yemen city from Shiite rebels

Libya militias trap civilians in Benghazi

EU border agency plans to expand migrant rescue operation

Syria state TV blames ‘foreign enemies’ for signal jamming

Palestinians and jihadists clash in Yarmouk

Iraq refugees forced back into conflict zones

Kuwait restores Islamist lawmaker's citizenship

Washington Post reporter goes on trial behind closed doors in Iran

Iraq launches operation to drive ‘Islamic State’ from Anbar

New airport in restive eastern Turkey

Iran ‘thwarts’ US cyber attack on Oil Ministry’

Egypt opens border crossing with Gaza for 48 hours

Litany of problems keep Iraqi army weak and ineffective

Rouhani: most Iranians favour peace

Iran Foreign Minister discusses Yemen conflict in neutral Oman