Arabtec's Target wins $86m Tecnicas Reunidas deal for Bu Hasa
Win follows Target's $142m Tecnicas Reunidas contract in Nov'18 for the same project and takes its total contract value to $228m
The UAE’s Dubai Financial Market-listed Arabtec Holding said its subsidiary Target Engineering had been awarded a $85.7m (AED315m) contract for Abu Dhabi National Oil Company’s (Adnoc) Bu Hasa Integrated Field Development project from Spain’s Tecnicas Reunidas.
Target’s latest contract win extends its scope of work on the Adnoc Onshore project, for which it won a $141.8m (AED521m) deal in November 2018 from the Spanish firm.
Consequently, the value of Target’s contract on the project has reached $227.6m (AED836m).
As part of the new contract, Target’s scope of works includes the general construction and expansion of the existing Bu Hasa oil pad hubs, the gas lift’s Phase 2, and the produced water re-injection’s first and second phases.
Contract works will begin in June 2019 and span 28 months, with the project expected to increase and sustain Bu Hasa’s production plateau output to 650,000 barrels per day October 2021.
Commenting on the contract win, Arabtec’s acting group chief executive officer, Peter Pollard, said: “We are pleased that Tecnicas Reunidas has awarded Target the extended works for the Adnoc Onshore project, which reflects our solid relationships across the markets in which we operate.
“We continue to strengthen our industrial infrastructure portfolio, supporting our strategic priority to diversify our backlog.
“More than 50% of our current backlog is spread across social, economic and industrial infrastructure and we will continue to build on our competencies to onboard similar projects in our core geographies,” he added in a missive to the Dubai bourse.