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Arabtec unit wins $142m Adnoc contract from Spain's Tecnicas Reunidas

Target has been picked to work on Adnoc Onshore's Bu Hasa Integrated Field Development project

Arabtec's Target will carry out mechanical and electrical works at Adnoc Onshore's Bu Hasa Integrated Field Development project.
Arabtec's Target will carry out mechanical and electrical works at Adnoc Onshore's Bu Hasa Integrated Field Development project.

Spanish firm Tecnicas Reunidas has appointed Target Engineering to carry out a $141.8m (AED521m) mechanical and electrical works contract at Abu Dhabi National Oil Company’s (Adnoc) Onshore’s Bu Hasa Integrated Field Development project.

According to a statement, the scope of work for Target – a wholly owned subsidiary of Dubai contracting giant Arabtec Holding – includes the construction and expansion of the existing Bu Hasa oil pad hubs, the gas lift's Phase II, and both phases of produced water re-injection.

Contract works will commence in May 2019 for a duration of 30 months, said Arabtec. The purpose of the project is to increase and sustain the Bu Hasa production plateau output to 650,000 barrels per day by 2020.

READ: Arabtec subsidiary's consortium wins $871m Adnoc LNG contract

Speaking on the win, Hamish Tyrwhitt, group chief executive officer of Arabtec Holding, said: “We are delighted to be appointed by Tecnicas Reunidas to carry out the mechanical and electrical construction works for Adnoc Onshore.

“This is another oil and gas project which demonstrates Target’s strength in the industrial sector as we continue to build on our core competencies in our core markets.”

Bu Hasa oilfield lies 200km south of Abu Dhabi and has been in production since 1965, according to construction intelligence platform ProTenders. The field’s total proven reserves are around 6.52 billion barrels and production is centered on 600,000 barrels per day.

READ: Arabtec Holding’s Target lands contracts worth $78.7m in UAE

Last week saw Adnoc Onshore, the state-owned oil and gas giant’s delivery arm, award London-headquartered Penspen a $70m (AED257m) project management consultancy contract for 15 of its "major projects".

In October, Adnoc Onshore also announced the installation of all 'supercomplex' facilities at the Nasr oil field off the coast of the UAE capital. In the same month, Adnoc’s sour gas subsidiary said construction on a planned pipeline to carry molten sulphur from its Shah field is on track.

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Construction Week - Issue 753
Nov 09, 2019