UPDATE 2-UAE’s ADNOC awards $5.6 bln worth contracts for Shah

* ADNOC awards contracts after ConocoPhillips’ exit

* Saipem wins $3.1 bln out of $5.6 bln ADNOC’s contracts

* Samsung Engineering wins $1.5 bln contract

(Adds ADMA contract)

DUBAI, May 1 (BestGrowthStock) – Italy’s Saipem (SPMI.MI: ) emerged as
the biggest winner in a $5.6 billion round of contracts from Abu
Dhabi National Oil Company (ADNOC) for the Shah gas field, days
after ConocoPhillips’ (COP.N: ) bailed out of the project.

Saipem was awarded three contracts, worth a total of around
$3.1 billion, for a gas process plant, sulphur recovery and
product pipelines.

South Korea’s Samsung Engineering (028050.KS: ) won a $1.5
billion contract for the utilities and offsite package.

The state-run ADNOC said a consortium of Spain’s Tecnicas
Reunidas (TRE.MC: ) and India’s Punj Lloyd (PUJL.BO: ) secured a
$463 million gas gathering package.

“The project facilities are scheduled for completion by
2014,” ADNOC said.

On Thursday, ADNOC said it would proceed with the
development of the Shah gas field despite ConocoPhillips’ exit
from the scheme. [ID:nLDE63S1MH]

Conoco announced it had ended its participation in the $10
billion Shah project on Wednesday, its second withdrawal in a
month from high-profile projects in the Gulf.

The Shah scheme is to pump and purify gas with a high
content of potentially deadly sulphur dioxide, making it tougher
and more expensive to produce than conventional gas.

The Gulf Arab state has been slow to develop the world’s
fifth-largest gas reserves to meet demand from industry and the
power sector. To meet the shortfall, it imports gas via pipeline
from Qatar.

Shah would pump around 1 billion cubic feet per day (cfd) of
raw gas, which after processing would give 540 million cfd of
gas fit for consumption.

“Gas production is expected in mid-2014, that’s the target,”
a UAE oil official told Reuters.

Separately, Abu Dhabi offshore unit ADMA-OPCO announced it
had awarded U.S. company Fluor Corp (FLR.N: ) two front-end
engineering and design contracts for the Umm Lulu and the Satah
al-Razboot fields, although it did say how much the contracts
were worth.

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(Reporting by Raissa Kasolowsky in Dubai and Reem
Shamseddine in Beirut; Editing by Keiron Henderson)

UPDATE 2-UAE’s ADNOC awards $5.6 bln worth contracts for Shah