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.

 

Horse-trading begins as Tunisia awaits formation of new government

Israel closes al-Aqsa mosque to worshipers in rare move

UK court says Libyan Abdul-Hakim Belhaj can sue over rendition

Syria accuses Turkey of ‘flagrant violation of sovereignty’

Global campaign to end female genital mutilation kicks off

US to examine troops exposed to chemicals in Iraq

African Union hits back at Somalia rape claims

New scare in Turkey as ‘suspect packages’ found

‘Insults against Netanyahu’ cause embarrassment to US

Kuwait online activist gets four years in jail for insulting judges

Heavy fighting in South Sudan sparks fears of humanitarian catastrophe

Sweden officially recognises State of Palestine

Egypt jails retired general for damaging national security

Gaza civil servants receive delayed salaries

After US criticism, Israel vows no concessions to Palestinians

Libya internationally recognised PM opens doors of dialogue with rivals

Huthi rebels seize stronghold of Muslim Brotherhood in central Yemen

Will Nidaa Tounes shun Islamists in Tunisia government formation?

Egypt starts work on buffer zone along border with Gaza

Turkey Sultan unveils new palace: Another break with symbols of secular state

Heavy toll as ‘Islamic State’ fights for control of Syria oil field

Iran President suffers fresh setback with rejection of Science Minister

Nuclear deal or no deal: ‘Red lines’ lay bare internal divisions in Iran

Heavy security in Mogadishu as UN chief meets Somalia president

Fighters from Free Syrian Army leave Turkey to join Kobane battle

Israel denies banning Palestinians sharing buses

Kurd fighters leave northern Iraq base for Syria deployment

Jordan requests UN emergency meeting over Israel settler expansion

Jerusalem Mayor visits Al-Aqsa mosque prompting anger

Tunisia reinforces commitment to democracy with ‘transparent’ elections

Turkey ‘decides’ for Kobane future: No Kurds, no Assad... Only Free Syrian Army!

Bahrain suspends Al-Wefaq weeks before parliamentary elections

Huge game changer in Tunisia: ‘In-credible’ failure of Islamist Ennahda Party

Libya PM in Khartoum for talks with Bashir

PKK hijack truck seizing explosive substance

Saudi lawyers get jail time for offensive tweets

Ennahda concedes defeat in Tunisia parliamentary elections

Syria rebels launch assault on regime-held city of Idlib

Iraq peshmerga wait for Turkey stance to depart for Syria

Sisi enacts military trials decree to cover ‘existential threat’

US calls for online war against ‘Islamic State’

Donors pledge $8 billion for Horn of Africa

Acid attacks in Iran: Deputy of Judiciary Chief to lead investigation

Lebanon army enters Islamist stronghold in Tripoli

Israel approves plans for 1,000 settler homes in East Jerusalem