Dubai: Engineering, Procurement and Construction (EPC) Contracts worth $43 billion (Dh158 billion) have been awarded for projects in the Oil, Gas, Petrochemical and Power sectors in the GCC during the 12 months to November 2013, according to regional project tracking database, MEED Projects. More than 40 per cent of this total estimated amount was awarded by two major Saudi clients, Saudi Electricity Company (SEC) for 23 packages (including Jeddah South Thermal Power Plant and Shuqaiq Steam Power Plant) and Saudi Aramco (including 11 packages of the Jizan refinery Project). These 42 contracts, worth an estimated $19 billion, ranked SEC and Saudi Aramco top of the list of clients to award EPC contracts in this 12 month period and makes Saudi Arabia the biggest market in the GCC for EPC awards.
The third ranked client is Abu Dhabi Marine Operating Company (ADMA-OPCO), awarding five contracts worth $4.9 billion for packages at Das Island, Sarb and Umm Al-Lulu fields. The top three clients in these sectors contributed 17 per cent of total contract awards (all sectors) in the GCC during the 12 months to November 2013.
Consistent trend
Korean EPC contractors dominate the list of winning contractors, reflecting a consistent trend since 2009. Seven of the 10 biggest contracts were awarded to individual Korean contractors or to consortiums of which Korean companies are a part. The biggest single EPC contractor by value of awards is Hyundai Heavy Industries which is a joint venture partner in three of the top four projects to be awarded.
EPC contractors headquartered in the UAE have fared well and the UAE is the second ranked country of origin with nearly $3.5 billion worth of contracts in this period. NPCC is the only UAE-based EPC to break into the top 10, although 17 UAE-based contractors have been awarded EPC contracts.
The UAE also features the region’s biggest project award during the last 12 months: ZADCO’s EPC 2 package for Upper Zakum, at over $3 billion, which was awarded to a joint venture of Petrofac and Daewoo.
