Abu Dhabi's Gasco Moves on $3.8 Billion Production Expansion Tenders

---

Researched by Industrialinfo.com (Industrial Information Resources, Incorporated; Houston, Texas). Maintaining the pace on new project development in the UAE territory, Abu Dhabi's Gas Industries (Gasco) has short listed four bidders for the third phase of the Onshore Gas Development (OGD-3), Mohammad A. Sahoo, Gasco's General Manager, said this week.

The bidding companies on the list for the $1.3 billion project are Technip (NYSE:TKP) (Paris, France), Bechtel (San Francisco, California), and the Japanese companies Chiyoda (TOKYO:6366) and JGC (TOKYO:1963).

Mr. Sahoo said, "We have already narrowed down the technical and legal issues with the bidders, after thorough negotiations. We will award the contract in a few weeks' time, hopefully during Ramadan, once the negotiations and formalities are completed."

Gasco has a total of three projects in the tendering phase, in addition to OGD-3. The others are the $1 billion Ruwais NGL 3rd Train project and phase two of Asab Gas Development (AGD-2), valued at $700 million. In addition to these projects, Gasco has issued a $600 million tender for the construction expansion project on the gas injection compressor/ feed compressor at Habshan.

Speaking at a conference on 'Major New Projects Opportunities in Abu Dhabi' Mr. Sahoo said that the completion of these projects would increase the total capacity of Gasco's production from the current five billion scfd (standard cubic feet per day) to eight billion scfd.

"Besides, we are also floating a new tender for an additional gas train in Hashing later this year for a possible contract during the third quarter of next year. In addition we are undertaking some upgradation projects in some of the existing facilities including Bu Hasa facilities, Habshan ethane recovery maximization, Habshan capacity enhancement, Bu Hasa integrated control system, pipeline network expansions and storage capacities, the total value of which could be over $200 million," added Mr. Sahoo.

Gasco is currently supplying ethane at a rate of 2,500 tons per day. By 2008 that figure will have increased to 8,000 tpd.

See related August 20, 2004 news article - Contracts to go as Abu Dhabi Kicks in World Scale Project Drive in Oil and Gas at Habshan.