ADMA-OPCO Signs $2.4b EPC Contracts for SARB Project

Abu Dhabi Marine Operating Company (ADMA-OPCO) has signed two Engineering, Procurement '&' Construction (EPC) contracts valued at around $2.4b for the Satah Al-Razboot (SARB) Full Field Development Project with S. Korea's Hyundai Engineering '&' Construction Company (HDEC) and Petrofac International, Abu Dhabi.

SARB Full Field Development is a strategic initiative of ADNOC within the context of its oil production enhancement plans and Abu Dhabi's broader development strategy. The development project is part of the overall scheme of ADMA-OPCO to add 300,000 barrels a day (b/d) of additional production from its new offshore fields, with about 100,000 b/d coming from SARB oilfield to be developed through 7 packages.

For the full development of SARB Oilfield, ADMA-OPCO has selected the construction of two artificial islands, SARB-1 and SARB-2, which have been falcon-shaped and are currently under construction by ADNOC Civil 120 km to the northwest coast of Abu Dhabi. Among several other packages, the development has two major onshore and offshore EPC Packages: the onshore package number 4 has been awarded to HDEC for US$ 1.89 billion, while the offshore package number 3 has been awarded to Petrofac International for US$ 515.4 million.

The two contracts were signed in a ceremony at ADMA-OPCO's Headquarters in Abu Dhabi, in the presence of ADMA-OPCO Chief Executive Officer Mr. Ali Rashed Al-Jarwan, Mr. Ali Ghanim bin Hamoodah, Senior Vice President (Projects - Engineering), Mr. Ali Saeed Al-Mazroui, Senior Vice President (Administration), Mr. Qasem Musallam Al-Kayoumi, Manager, Offshore Division, Exploration '&' Production Directorate, ADNOC, Soo-Hyun Jung, President '&' CEO of HDEC, and Marwan Chedid, CEO of Petrofac International as well as a number of ADMA-OPCO's SARB Team and senior executives.

Following the signing, 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 signing of the two contracts came under the guidance of Abu Dhabi government and the support of the Supreme Petroleum Council and the Shareholders," said CEO, stressing that the entire project is in line with ADNOC guidelines to ensure sustained oil production while maintaining high HSE standards.

"The Onshore Facilities EPC work undertaken by Hyundai EC covers processing, storage and export facilities on Zirku Island and wellhead facilities on two Artificial Islands," explained CEO.

"The offshore works undertaken by Petrofac mainly include around 200 km of subsea pipelines, 55 km of subsea cables, a Single Point Mooring Crude Loading Facility, four offshore flares and two riser platforms in addition to drilling utilities on the Artificial Islands." Mr. Al-Jarwan noted that ADMA-OPCO has taken advantage of the major project to develop and train young UAE Nationals and made sure that this requirement has been covered under the EPC Scope of Work.

Commenting on the major milestone, Manager, Offshore Division, ADNOC, said, "SARB is one of ADNOC's sole-risk projects that are playing a key role in Abu Dhabi's efforts to increase its crude production capacity." He expressed conviction that ADMA-OPCO's sound management of the field development in collaboration with Hyundai and Petrofac will result in the best possible execution of the project as per ADNOC HSE Code of Practices.

When completed in April 2017, SARB will be the first Offshore Digital Intelligent Oil Field Development with a state-of-the-art technology in automated facility in the UAE. The modular construction, energy efficiency and environmental compliance are major cornerstones of the project design.

President '&' CEO HDEC expressed satisfaction with his company's new partnership with ADMA-OPCO, saying that "HDEC will spare no effort to execute the project to the full satisfaction of ADMA-OPCO and will interface and cooperate with Petrofac to ensure the highest abidance by ADNOC HSE Criteria." CEO of Petrofac said his company is attaching paramount importance to the new project, which is "Petrofac's first offshore development in the Emirate of Abu Dhabi."