Abu Dhabi accelerates $1bn oil and gas projects plan

23 May 2008
Abu Dhabi is moving ahead with three major projects, worth almost $1bn in total, which will substantially increase its offshore oil and gas capacity as well as upgrading its existing infrastructure.

Eight contractors have submitted technical bids for the estimated $300m contract to replace the Zakum main oil line belonging to Zakum Development Company (Zadco).

The bidders are Global Industries and J Ray McDermott, both of the US, Larsen & Toubro (L&T) and Punj Lloyd, both of India, the local National Petroleum Construction Company (NPCC), Italy's Saipem, Dubai-based Dodsal and South Korea's Hyundai Heavy Industries. The deadline for commercial bids is 2 September.

The lump-sum engineering, procurement and construction (EPC) contract covers a 60-kilometre-long pipeline from the offshore Zakum central complex to Zirku island (MEED 13:4:08).

Tender documents have also been issued for a project to revive the Zakum Central Super Complex for Abu Dhabi Marine Operating Company (Adma-Opco). Five contractors have been invited to submit technical and commercial offers by 15 August for the EPC contract, which is also estimated to be worth $300m.

The prospective bidders are the local Gulf Piping, the UK's SLP Engineering, UAE-based Petrofac International, L&T and NPCC.

The scheme was initiated four years ago, with Paris-based Technip carrying out the front-end engineering and design. However, it was judged to be financially unviable.

Rising oil prices and a decision by the government to increase production capacity at lower Zakum have led to the project being reactivated.

Contractors are also preparing to submit bids to Adma-Opco for the offshore portion of the $5bn-plus integrated gas development, which will deliver more than 700 million cubic feet a day of gas to Abu Dhabi.

The estimated $250m lump-sum engineering, procurement and construction contract covers gas from the offshore Umm Shaif field.

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