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Sun 20 Feb 2011 12:02 PM

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Arabtec unit inks $56m contract for Shah Gas field

Target Engineering to build key infrastructure for field contractor Saipem, a unit of Italian giant ENI

Arabtec unit inks $56m contract for Shah Gas field
ARABTEC UNIT: Saipem, a unit of energy giant ENI, awarded the contract to Target Engineering Construction, Arabtec said

A unit of Dubai’s Arabtec Holding has won an AED 206m ($56m)
deal to build vital infrastructure for an Italian company working on the
development of Abu Dhabi’s Shah Gas field.

Saipem, a unit of energy giant ENI, awarded the contract to
Target Engineering Construction, Arabtec said in a statement to the Dubai
bourse on Sunday.

The scope of work on the 20,000 sq m project also includes construction of 12
substation buildings, along with instrument and equipment shelters.

Arabtec said that construction would take 33 months, and
that preliminary mobilisation had already begun.

Saipem was awarded three contracts by Abu Dhabi National Oil
Company (ADNOC) worth $3.5bn in May last year to build infrastructure at the
Shah field. 

ADNOC handed US firm Occidental Petroleum a deal to help
develop the $10bn sour gas field in January, after ConocoPhillips pulled out
last year.

Earlier this month, Arabtec signed a $241m contract to build
educational facilities in Kuwait.

In January, the firm also confirmed
it had won two deals worth $97m in Abu Dhabi and Egypt, and said it was
planning to raise $150m through the sale of five-year convertible bonds.

Arabtec will use the funding to “support the company’s expansion plans to the
new markets and increase its working capital,” it said.

Arabtec, which is bidding for $8.17bn of work outside its local markets,
reported a 96 percent decline in third quarter net profit to $1.85m, hit by
project cancellations in the Dubai market.

 

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