ABB, the leading power and automation technology group, has been awarded a $175 million contract to upgrade the power generation capacity at Zirku oil and gas processing facilities in the Gulf. The order, which covers engineering, procurement and construction (EPC), was awarded by Zakum Development Company (ZADCO), and booked by ABB in the fourth quarter of 2013.
The project involves the installation of additional power generation facilities to improve overall energy efficiency and operational flexibility and reliability. ZADCO plans to increase the production rate of the Upper Zakum field from 550,000 to 750,000 barrels of oil per day. The Zakum field is estimated to be the second-largest field in the Gulf and the fourth-largest in the world.
Zirku Island, located 135 kilometers north-west of Abu Dhabi, is considered the main industrial base for the processing, storage and export of oil from the Upper Zakum, Umm Al-Dalkh and Satah fields. With its advanced oil and gas installations, Zirku processes and exports ZADCO's oil via cargo ships to the world markets.
"ABB's deep oil and gas industry knowledge and project execution capabilities were important factors in winning this order," said Veli-Matti Reinikkala, head of ABB's Process Automation division. "With over 50 years of experience and more than 300 EPC projects implemented, ABB is a player of excellence in the oil and gas industry. New oil and gas frontiers require power and automation solutions and ABB has a unique business scope in power, automation and power electronics."
"This is a strategic project for ZADCO and we look forward to working with ABB to successfully deliver the project safely and on schedule," said Robert Talbot, SVP-Projects, ZADCO.
ABB is responsible for the engineering, procurement, construction, installation, pre-commissioning, commissioning and testing of two gas turbine driven generators, step-up transformers, new high-voltage switchgear, power management system and associated facilities. The scope of work includes the delivery of a new substation to house Gas Insulated Switchgear (GIS). ABB will also provide waste heat recovery units to utilise exhaust gas from the new gas turbines for process heating and subsequently reducing CO2 emissions. The project is currently in the design stage and is scheduled for completion and handover to operations in June 2016.
Oil, gas & petrochemicals represent a significant share of ABB's revenues. A combination of mature markets; frontier markets (deep water, arctic, heavy oil); and non-conventional gas (shale, coal seam gas) are driving investment to new levels. Higher oil prices are driving industrial productivity and energy efficiency.
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