Abu Dhabi awards $1.6 billion contract to Hyundai Heavy Industries
Posted: 02 October 2006
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Hyundai Heavy Industries (HHI) has received an order to build offshore oil production facilities, worth approximately$1.6 billion, the company announced.
HHI said a Letter of Award has been executed with Abu Dhabi Marine Operating Co. (ADMA-OPCO), the subsidiary of the state-run Abu Dhabi National Oil Company (ADNOC) of Unite Arab Emirates, for the Um Shaif project to build offshore oil and gas production facilities.
The project involves the construction of three fixed platforms of 40,000 tons, subsea pipelines and bridges offshore Abu Dhabi . The project will be completed by 2010 and produce 300,000 barrels of oil and 1.0 billion cubic feet of natural gas a day. United Arab Emirates is the world's fourth largest oil-producing country.
The Um Shaif project is not only the largest offshore oil production facilities but also the first case to award whole project to a foreign company. HHI will carry out all phases of the project on a turnkey basis, ranging from engineering, procurement, installation to commissioning work. An HHI official says, "That HHI, as a single contractor, is participating in the Um Shaif project is a good sign for HHI's future projects in this region. And it is significant in that our performance and quality are recognized in the offshore industry and we have established a bridgehead for future large projects in the Middle East." adds an HHI official.
With this order, HHI has achieved the new orders of $11.0 billion in the fields of shipbuilding, offshore and engineering, industrial plant and engineering exceeding the annual target of $10.8 billion. HHI's Offshore and Engineering Division is now under negotiation for further projects, and its new orders are higher than the annual target. |
