Petrofac consortium lands $3.7bn Abu Dhabi deal

Petrofac Emirates – a joint venture between UK-listed oil & gas contractor and Abu Dhabi services company Mubadala – has announced that its consortium has been awarded a $3.7bn contract by Zakum Development Co (Zadco) to develop the UZ750 Upper Zakum oil field in Abu Dhabi.

Zadco is an Abu Dhabi National Oil Company subsidiary in which ExxonMobil and Japan Oil Development Co are minor shareholders. It is overseeing the development of oil fields off the coast of Abu Dhabi which will use five artificially-created islands.

The project involves engineering, procurement, construction transportation and commissioning of island surface facilities (EPC-2) on four artificial islands.

This will include the installation of facilities to extract oil from wells and all associated power and facilities. The contract is being delivered alongside Daewoo Shipbuilding & Marine, and Patrofac Emirates said that its share of the deal is worth $2.9bn.

Subramanian Sarma, MD of Petrofac’s onshore engineering & construction (OEC) business, said: “I am delighted that Petrofac has been selected to deliver this landmark project for the Upper Zakum development in Abu Dhabi.

“Through Petrofac Emirates we continue to show our commitment to supporting the oil & gas industry in Abu Dhabi and this project builds on the substantial work we have underway in the UAE. We look forward to developing our relationship with ZADCO through the successful delivery of this strategically-important project.” The facilities being built will begin operations in 2016.