OIL services group Petrofac yesterday inked a major contract alongside Hyundai with Abu Dhabi Marine Operating Company (Adma-Opco) to develop an offshore oil project.
The two contracts are worth $2.4bn (£1.6bn) together, Adma-Opco said yesterday.
The Satah Al-Razboot (Sarb) project, off the coast of Abu Dhabi in the United Arab Emirates, is part of Adma-Opco’s plan to boost the country’s oil output.
London-listed Petrofac, which has been awarded a $500m engineering, procurement, installation and construction contract, said yesterday that the work is due to start shortly and will be finished by April 2016.
Petrofac, whose work on the project will be focused offshore, will provide 200km of subsea pipelines as well as 3km of onshore pipelines, as part of work on its first offshore project in the Middle Eastern Emirate of Abu Dhabi.
South Korean-based Hyundai Engineering & Construction has won a contract worth $1.89bn for work on the oil project.
Hyundai’s work will focus on the onshore facilities, which includes processing, storage and export facilities.
The development of the Sarb project will add 100,000 barrels of oil a day, Adma-Opco said.
Petrofac investors were not convinced by the contract win yesterday as the stock remained flat, closing at 1,433p.