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.

 

New government in Yemen plus cut in fuel prices

11 Egypt policemen killed in Sinai bomb blast

US army back in Somalia

Paris, Riyadh 'finalising' $3bn Lebanon arms deal

Sudan orders Iran to close cultural centres

Syria arrests pro-regime activists over criticism

Libya pro-Islamist figure presents rival cabinet lineup

Israel faces mounting criticism over Palestinian land grab

Saudi Arabia arrests 88 suspected extremists in 'anti-terror' drive

New UN chief for South Sudan faces ‘huge challenge’

US air strikes target senior Shebab officials in Somalia

‘Scourge of terrorism’ pushes Africa to intensify cooperation

Relatives of missing Iraq soldiers storm parliament in Baghdad

IS accused of 'systematic ethnic cleansing' in Iraq

UK announces tougher measures against Britons planning jihad

Algeria hosts new round of Mali peace talks

US launches new round of air strikes around Iraq dam

Turkey summons US charge d'affaires over Snowden claims

Turkey new PM promises peace with Kurds

Will UN Human Rights Council investigate IS abuses?

Iran convicts Ahmadinejad's vice president for embezzlement

Fierce clashes shatter uneasy calm near armistice line in Golan Heights

Turkey detains dozens of police in new nationwide raids

Libya loses control of Tripoli to Islamist-led militias

Thousands of Huthis defy UN in new show of strength

Iraq presses fightback against jihadist-led militants

Wounded Gazans need long-term care

Britain to go tougher on jihadist suspects

Libyan Islamist militiamen control US embassy compound

Israel shoots down drone over occupied Golan Heights

Yemen army suffers heavy losses in new wave of Qaeda attacks

Turkish army breaks silence on Kurdish peace talks

Islamic State offers grim inspiration to African extremists

Shebab target intelligence HQ in Somalia

Israel expropriates 988 acres of Palestinian land in West Bank

Iraq recaptures Amerli from Islamic State in biggest success so far

Saudi King calls for ‘strong and rapid action’ against jihadists

Jihadists distribute Yazidi women as spoils of war to fighters

Gulf countries resolve six-month dispute with Qatar

Egypt reduces Badie death sentence to life in prison

AU forces liberate former Shebab stronghold in Somalia

Philippines enters war in Syria!

Kurds put aside old rivalries to battle jihadists in Iraq

Iran says new sanctions cast doubt on US sincerity

US imposes new sanctions on Iran