The Dh1.2 billion project is planned to be completed towards the end of the year 2006.
Saeed Khoory, Adco's Assistant General Manager-Technical, and Agnelo Caridi, M.D Snamprogetti signed the contract in presence of the Italian Ambassador Domenico Pedata.
Saeed Khoory, said: "Over the last four years ADCO's staff of the Engineering and Projects Division, the Abu Hasa Operations Management Division and all other departments and directorate have contributed so much to the success of the project."
The project consists of new centralized oil production facilities (GOSP) to handle increased GOR and water cut projected for the next 30 years.
The project also includes gas and water injection facilities, applying the WAG concept and variable speed motor drive for the injection compressor, with a capacity of 150 MMSCD and 120,000 barrels water per day.
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