Oil affairs in Abu Dhabi p.173

FCO 8/2139 1973 Jan 01 - 1973 Dec 31
Foto
ADMA DEVELOPMENT: DAS ISLAND

I called on Mr. F. Chesworth of Bechtel International
at the Al Ain Palace Hotel last evening to have a
general talk about their forthcoming operations in
Abu Dhabi. Mr. Chesworth confirmed that the
agreement between Bechtel and Tokyo Tlectric Power
Company Inc. on the one side and B.P. ADMA on the
other had been signed on 15 December and that work
was now about to start on the IG Plant on Das
Island.

As a first stage Bechtel would be setting a small
office in Abu Dhabi staffed by Americans to organise
the ground work for future operations. Tender
notices have been issued to CCC, Joannou and
Paraskevaides. Group of Nicosia, Taylor and Woodrow
International Limited, and Lessor Limited for the
construction of prefabricated camps for the work
force. The value of these camps is in the region of
$5 million. The sites for the camps have not yet
been officially decided but will either be between
The Club and the Abbatoir or on the right hand side.
of the Airport Road after the ministry of Dblic
Works.

By the end of 1973 there will be a work force of
some 2,000 people on Das Island and 1,500 in Abu
Dhabi, prefabricating and erecting the plant. The
whole operation will be managed from a central
office here in which there will probably be over
100 British Starf. The Manager desiate for the
job is also British.

Mr. Chesworth said that a lot of the material for
the Plant would come from Japan as part of the
licensing arrangements and a considerable amount
would also come from the U.S.A. who have the
expertise in this sphere of LNG production, the
U.K. would be supplying peripheral e cuipment.
The Plant is to be in production by the end of 1975.
This enourmous project is bound to have considerable
impact on the economy of Abu Dhabi and strain its
resources considerably. One of the problems facing
the contractors is that of labour and they will have
to import Welders etc., from Pakistan. I advised
Mr. Chesworth that it was in his prime interest to
get a first rate local merely to keep the finistry
of Labour happy. I was advised that Mr. Gordon
Goodrich, the Vice President of Bechtel who was here
during the Summer, will be coming back to Abu Dhabi
sometime this month and I hope then to have the
opportunity of having a long discussion with him
about this project.

Bechtel are not having very much to do with ADHA
at the moment, since they reckon they will need all
the goo 71 in the world later on in the contract.

2 DTI