Abu Dhabi’s ADQ buys out minority partner in contractor NPCC

State-owned holding company acquires 30% stake in oil and gas specialist from Consolidated Contractors Company

ABU DHABI, UNITED ARAB EMIRATES , JUNE 26 -2019 :- View of the world’s largest fixed oilfield platforms at the NPCC Campus in Musaffah in Abu Dhabi. ( Pawan Singh / The National ) For Business. Story Show more

ADQ, the group formerly known as Abu Dhabi Developmental Holding Company, bought the 30 per cent stake in National Petroleum Construction Company it did not already own from minority shareholder Consolidated Contractors International Company for an undisclosed sum.

NPCC, headquartered in Abu Dhabi is an engineering, procurement and construction company involved in a number of oil and gas projects in the Arabian Gulf, South Asia and South East Asia. It plans to expand its operations to Africa and Caspian region.

“ADQ comprises some of Abu Dhabi’s most successful and ambitious enterprises, and we look forward to working more closely with NPCC as we further develop a world-class portfolio of companies that add tangible value to the economy,” said Mohamed Hassan Al Suwaidi, chief executive of ADQ in a statement on Wednesday.

“NPCC can help to strengthen the oil and gas sector of the UAE, elevate the status of Abu Dhabi as a fast-growing global hub for energy sector EPC operations, whilst contributing to our nation’s overall economic growth.”

NPCC was founded in 1973 to make steel structures for the industry and was one of the companies that had previously formed part of the General Holding Corporation, also known as Senaat, that last month transferred to ADQ. The 14 companies added to its portfolio brought the total number under ADQ to more than 25.

“With ADQ’s guidance, NPCC will continue to focus on its core strengths of providing exceptional EPC services, including complex projects that support the nation’s oil and gas infrastructure. NPCC will also seek to drive international expansion, having defined opportunities in core markets such as Saudi Arabia, Egypt, Kuwait, Bahrain and elsewhere,” said Khalifa Sultan AlSuwaidi, chief investment officer at ADQ and chairman of NPCC.

ADQ said NPCC "set a record year of growth in 2019, achieving the highest revenue earned since its formation”. It did not give details on the total revenue earned but said “the focus of the company’s operations has been to create in-country value, recording over Dh1 billion in local procurement and services contracts awarded in the past two years”.

As of March 2019, NPCC had executed more than 1,216 EPC projects and has a team of over 1200 engineers, based in four engineering centres in Abu Dhabi, Mumbai and Hyderabad in India, and La Ciotat in France.

The company also signed agreements with two Chinese firms last year to jointly explore onshore and offshore oil and gas deals, and collaborate on other potential areas of interest.