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(Reuters) - Abu Dhabi-based oil and gas services contractor National Petroleum Construction Co (NPCC) and French group Technip have been jointly awarded a nearly 3 billion dirham ($817 million) contract to build offshore facilities at an oil field in Abu Dhabi, two sources said.

The contract is for the first phase of Zakum Development Co's (Zadco) expansion at its offshore oil field whose production will rise 100,000 barrels per day (bpd) when completed, one of the sources told Reuters on Monday.

"This is one of the big contracts NPCC and Technip have jointly won in Abu Dhabi this year. The two will be bidding for some more projects," a second source familiar with the matter said.

Zadco, which operates the Upper Zakum field that is ranked as the world's fourth largest by the company, produces 500,000 bpd and plans to lift that to 750,000 by 2015.

The second phase of the project where bidding is under way will increase production by 150,000 bpd.

Zadco is a subsidiary of Abu Dhabi National Oil Company which holds a 60 percent stake. U.S. company ExxonMobil and Japan Oil Development Co Ltd have 28 percent and 12 percent respectively. (Reporting By Stanley Carvalho; Editing by Dan Lalor)

"NPCC's 5-year business plan is being formulated. We have set ourselves an ambitious expansion plan in terms of volume, growth and geographical reach, scouting for opportunities in Southeast Asia, Caspian Sea and West Africa," Madhi added.

He said NPCC is targeting Dh5 billion in revenue this year, up from Dh4.2 billion in 2011.

The development of the Upper Zakum field is set to increase production capacity to 750,000 bpd by 2015.

A lot has changed in the EPC contracting environment since our last list in June 2010.

This is reflected in the increased number of South Korean players in the market winning major contracts, a subject that - judging from the volume of comments we get at arabianoilandgas.com - offers a major challenge to the way other companies the region do business.
Some have suggested that the habit Korean firms have of low-balling on price, sub-contracting out to fellow South Korean firms and carrying out engineering work in Seoul will not prove to be a sucessful  long-term business model.

National Petroleum Construction Company, a government-owned EPC specialist, has had a remarkable year, netting record profit of $249 million in the financial year 2010, up almost 40% on 2009.According to Hussain Jessem Al Nuwais, Chairman of NPCC, a consultancy firm is currently carrying out a business study to advise NPCC on its plans venture into the markets of Caspian Sea and the West African countries in order to expand its engineering, procurement and construction activities.

"Within a couple of months, we are expecting to receive a business strategy as to how to go about it," said Hussain Jessem Al Nuwais, Chairman of NPCC, on the sidelines of the company’s annual HSE and Quality day.
More than 50 per cent of NPCC’s revenues were earned outside Abu Dhabi, from hydrocarbon projects in Saudi Arabia, India and Qatar last year.

NPCC has strong ambitions to establish a proper base in both the Caspian and West Africa. NPCC bagged two major contracts in the offshore platform constructions last year, but the company is shifting its ambitions to onshore construction, where the competition is tough.
In May last year ADMA-OPCO awarded a 30-month contract to NPCC to carry out the EPC works for the Zakum Central Super Complex (ZCSC) Demothballing Project. The contract is valued at $350m.

"NPCC has demonstrated its competitive edge in terms of pricing, schedule and willingness to do the project," said Ali Al-Jarwan, ADMA-OPCO general manager.
The ZCSC Demothballing Project is part of overall ADMA Lower Zakum 100 MBD programme that aims to increase oil production capacity from the Zakum Field from 2012.

ADMA-OPCO is de-mothballing and re-commissioning the production facilities at Zakum after these were shutdown and mothballed in the early 1980’s.

For more detail:- http://www.arabianoilandgas.com/article-9063-new-the-years-top-30-epc-contractors/

ABU DHABI: Abu Dhabi-based oil and gas services contractor National Petroleum Construction Company hopes the launch of a number of big projects in the Emirates next year will boost revenue after a flat 2011.

In line with the Government’s drive to boost Emiratisation, National Petroleum Construction Company, or NPCC, has taken a lead role in creating job opportunities and providing the appropriate career development plans to attract and retain UAE Nationals in the challenging and demanding sector.

Whilst the initial drive for Emiratisation focused predominantly on male graduates, Abu Dhabi’s engineering and procurement and construction company is attracting an increasing number of female UAE staff, who is actively contributing to the various technical, commercial and administrative departments within NPCC.

In a recently, NPCC’s Chairman,  Hussain Jassem Al Nowais stated that 50per cent of the Executive Management Team at NPCC are Emiratis, and the target is to increase this to 75 per cent by 2012/2013. The total number of UAE Nationals has almost doubled in the last year to reach almost 200, including 30 female staff.

A consultancy firm is carrying out a business study to advise Abu Dhabi-linked National Petroleum Construction Company, or NPCC, on its plans venture into the markets of Caspian Sea and the West African countries in order to expand its engineering, procurement and construction activities.
“Within a couple of months, we are expecting to receive a business strategy as to how to go about it,” Hussain Jessem Al Nuwais, Chairman of NPCC told Khaleej Times, on the sidelines of the annual HSE and Quality day. Aqeel Abdullah Madhi, the Chief Executive Officer of NPCC was also present on the occasion.

Al Nuwais said “the government owned off shore petroleum construction company, which had a remarkable year, as it bagged a net profit of Dh915 million in the financial year 2010 on Dh 660 million earned in the same period a year ago, showing a surge of 39 per cent, a record in the 38-years history of the firm.”

“More than 50 per cent of NPCC’s revenues were earned outside Abu Dhabi, from hydrocarbon projects in Saudi Arab, India and Qatar after tough competition with international firms, he said.

The company has set a stretch target of Dh5 billion revenues for the year, 25 per cent higher than Dh4 billion earned last year, the chairman said.

For more revenues, the company is planning to expand its activities beyond the borders in a big way, he said. “We have selected markets of the Caspian Sea area and the west Africa,” he said.

The chief executive officer of the construction firm said, “We want to establish a proper base in both the regions. We could possibly choose Kazakhstan or Turkmenistan in the Caspian Sea area and find local partners there, who have experience in similar business, whereby we will their local knowledge”.

Likewise, in the West African nations of Nigeria and Angola, a business consultant will advise the Abu Dhabi’s construction firm, how to go about it, based on business volumes and expansion plans of those nations in the hydrocarbon sector.

“The business plan will determine what capital expenditure would be needed and also the business model we need to adopt,” Al Nuwais said.

To a question, why foreign firms bagged most of the oil and gas construction deals last year in Abu Dhabi, Chairman Al Nuwais said his company has bagged two major contracts in the offshore platform constructions, which had been its core competency. But, now NPCC was been expanded into onshore construction business, where the competition is tough, he said.

NPCC celebrates its Annual HSE and Quality Day on an elegant and eventful evening. In this ceremony company bestows awards for quality performances, environmental protection, etc to its sections which worked excellently in the year 2010.

The NPCC Sadiyat, an anchor-handling tug which can also assist in firefighting operations, during its launch at the National Petroleum Construction Company’s jetty in Mussaffah, Abu Dhabi, on Tuesday.

The National Petroleum Construction Company (NPCC) based in the capital is investing more than $400 million (Dh1.46 billion) to expand its fleet of marine vessels, the company's chief executive officer Aqeel Madhi said Tuesday.

Orders for Tugs:

"NPCC awarded two anchor handling tugs to Lingshan Shipyard in China. The first anchor handling tug, NPCC Saadiyat was handed over last month and the next vessel, which will be called NPCC Yas will join the NPCC fleet in March next year," Madhi said at a function in Abu Dhabi to announce the arrival of NPCC Saadiyat.

Madhi said NPCC is also building in its own yard in Mussafah a jack-up vessel SEP-450, using its own expertise and workforce, The new vessel is expected to be ready by the end of 2011.

Furthermore, he said a major step was taken in awarding a large Derrick Lay Barge, DLS-4200 to ZPMC shipyard in China last May, with a planned completion in July 2012.

"These vessels will provide us with greater flexibility and capability to work in shallow waters, deep waters and also in adverse weather conditions," said Madhi.

Separately, NPCC Chairman Hussain Al Nowais told reporters the company is looking at opportunities for expansion.

"We are looking at Libya, Nigeria, Kazakhstan...evaluating opportunities for expansion," he said.

NPCC is a major engineering, procurement and construction (EPC) contractor with a workforce of more than 10,000, a fleet of 14 vessels, a yard of one million square metres and an engineering workforce of more than 600. It currently has interests in the UAE, the Gulf, India and Iran.

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This year alone Abu Dhabi's National Petroleum Construction Company has bagged contracts worth over a billion US dollars in onshore and offshore projects in the UAE