Abu Dhabi's NPCC eyes $2bn orders, growth

National Petroleum Construction Co (NPCC), controlled by the Abu Dhabi government, expects its order book to hit around $2 billion annually, its chief executive said on Monday.

The oil company plans to expand to either Africa or the Caspian Sea region, where it will build a fabrication yard for onshore and offshore structures.

"Our current EPC (engineering, procurement & construction) contracts are about $1.8bn won this year and it should be around $2bn annually in the coming few years," Aqeel Madhi told Reuters.

Although the company has bid for several projects, it does not expect the order book to rise substantially, he said.

"There are lots of projects but there is also lots of competition especially from east Asian companies," he said, noting pricing had dropped by some 30 percent in recent years.

NPCC won two contracts from Abu Dhabi Company for Onshore Operation (Adco) in early 2010 valued at $1.3bn and one from Abu Dhabi Marine Operating Company (Adma-Opco).

The company is bidding for one of the biggest offshore projects in Saudi Arabia, the Wasit project, as well as work in India.

"We are seriously looking at markets such as Nigeria, Angola and Kazakhstan," he said, adding a consultant will be appointed this year to advise on the overseas expansion plans.

NPCC, which had 2009 revenues of Dh3.6 billion ($980.1 million), expects that to rise to Dh4bn this year and Dh5bn in 2011, Madhi said.

The company also plans to invest $400m in expanding its fleet size, he said. NPCC owns 14 marine vessels currently including heavy lift ships and barges.

NPCC is owned 70 per cent by Abu Dhabi government's General Holding Corporation and 30 per cent by Consolidated Contractors Group (CCC).