Search on
News Title
News Details
Reports/Directory
Glossary
Title_head
NPCC eyeing big projects in the UAE in 2012
1195 times viewed.
Wednesday, 21 Dec 2011
EmailButton
Pdf_button
coming-soon

Reuters reported that Abu Dhabi based oil and gas services contractor National Petroleum Construction Company hopes the launch of a number of big projects in the UAE in 2012 will boost revenue after a flat 2011.

Mr Aqeel Madhi CEO of National Petroleum Construction Company told Reuters in an interview that "At least four to five mega projects will be launched by Abu Dhabi National Oil Company with huge packages in billions of dollars and we see opportunities there."

The majority state owned firm has had a difficult 2011, facing stiff competition from price competitive Asian contractors actively bidding for projects across the Gulf. 2012 could be better, with NPCC hoping for Abu Dhabi's backing to win projects in the UAE. It also plans to target projects in Saudi Arabia and India.

ADNOC was expected to launch offshore projects as it seeks to boost oil and gas output. Despite winning significantly fewer projects this year, revenue will be flat due to a backlog of projects and profit could be hit by lower margins.

Mr Aqeel Madhi said that "We face aggressive competition from Koreans, Chinese and Indian companies who offer unrealistic prices." He added that as competition heats up in its home and neighboring markets, NPCC is eyeing new markets to widen its operations.

To cater to new markets where major offshore projects are being launched, the firm is investing USD 500 million to upgrade its offshore fleet, including building new vessels. It also wants to acquire an engineering firm in Europe or the United States to help its ability to enter new markets.

He said "We expect to enter the new markets by end 2012 and the acquisition could be completed by March 2012." He added that NPCC is funding its investment through equity and debt from commercial banks.

The firm has been active in Qatar but does not expect big contracts until 2013 due the gas rich state's moratorium on developing new fields. In September 2011, NPCC along with Technip won a USD 500 million offshore construction contract from Abu Dhabi's ZADCO. Abu Dhabi government's General Holding Corporation holds a 70% stake in NPCC while Consolidated Contractors Group holds the balance.

(Sourced from www.reuters.com)


This is alternative content.

/
Arcelor
Middle East News