Adma-Opco signs Dh3.25 billion EPC Contract for Lower Zakum Development
As part of the Supreme Petroleum Council (SPC) support and the Abu Dhabi National Oil Company (Adnoc) directives, Adma-Opco signed today an Engineering, Procurement & Construction (EPC) contract for the First Phase of Lower Zakum Oil Lines Replacement Project with the National Petroleum Construction Company (NPCC) at an approximate value of Dh3.257 billion ($ 885 m).
The project is part of Adma-Opco’s Lower Zakum 100 MBD programme aimed at enhancing the oil production capacity from Lower Zakum Field as part of its overall scheme to raise the company’s oil production from the current 600,000 bpd to around one million bpd by 2020.
Ali Al-Jarwan, Adma-Opco CEO, and Aqeel Madhi, NPCC CEO signed the agreement at Adnoc Stand on the sidelines of the World Future Energy Summit 2014 (WFES), now running at Abu Dhabi National Exhibition Centre.
"It’s our pleasure to have NPCC with us in this highly significant project which requires maximum attention in terms of quality and HSE," said Mr. Al-Jarwan.
"In this particular project NPCC have demonstrated their competitive edge in terms of pricing, schedule and willingness to do the project and we assure them of our maximum cooperation to do the job successfully," he added, noting that the entire project is in line with Abu Dhabi National Oil Company’s guidelines to ensure sustained oil production under Adnoc’s Codes of Practice on Environment Management.
On his part, NPCC CEO said, "We are delighted to continue our partnership with Adma-Opco, in once again one of the most challenging projects. Taking part in this project puts us in a very good position to address some of the (unconventional) and complex issues which requires a high-level of professionalism and expertise."
"This is an important project that will certainly add value to Adma-Opco’s operations. On our part, we are committed to complete the project to the best of Adma-Opco’s satisfaction."
Adnoc is implementing a long term plan to ramp-up its daily output reach to 3.5 bpd by 2020. A major chunk of new oil will be contributed by Adma-Opco.
Zakum Oil Lines Replacement Project is the third major EPC project awarded to NPCC by Adma – Opco within the last 12 months, the earlier being UMM LULU Package 1 and UMM LULU Package 2 Projects, and is a testimony to the very long and successful relationship between the two organizations.
The First Phase of Zakum Oil Lines Replacement Project consists of approximately 90 km of Oil Pipelines replacement and associated Wellhead Towers modification. It fits within Adma-Opco’s strategy of replacing aged oil pipelines in the existing offshore fields with the objective of mitigating potential environmental risks; maximizing asset lifetime and sustaining the oil production capacity.
Following the signing ceremony, Adma-Opco CEO highly commended the prudence of the Government of Abu Dhabi and the unlimited support given by the Emirate’s leadership to the oil and gas production enhancement plans. The ceremony was attended by senior executives of Adnoc & Group of Companies and Adma-Opco Senior Management team.
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