Abu Dhabi considers splitting offshore field contract

01 February 2011

Adma-Opco had planned to develop Umm Lulu and Nasr fields together

Abu Dhabi Marine Operating Company (Adma-Opco) is considering splitting in two the contract to build early production facilities at Umm Lulu and Nasr offshore fields.

The client is concerned that one engineering and construction firm would not be able to handle both packages at the same time. Adma-Opco is currently in talks with the lowest-priced bidder, India’s Larsen & Toubro, according to sources close to the scheme.

The client is concerned that one engineering and construction firm would not be able to handle both packages at the same time

Contractors had expected the projects to be tendered separately, when the scheme was first launched in August 2010, but later said the company decided to combine them in the hope of getting a better price and streamlining the tender process. Adma-Opco is now reconsidering its decision (MEED 5:8:10).

The local National Petroleum Construction Company (NPCC) was the second-lowest bidder for the engineering, procurement and construction (EPC) deal.

Five firms submitted bids on 11 January, after being delayed three times from the original September 2010 deadline, including:

  • NPCC
  • Larsen & Toubro
  • Saipem (Italy)
  • Technip (France)
  • Hyundai Heavy Industries (South Korea)

As part of Abu Dhabi’s plan to increase production to 1.75 million barrels a day (b/d) by 2020, the offshore developer wants to add 300,000 b/d of additional production from four new offshore fields. About 100,000 b/d will come from the Umm Lulu field, with the remaining 65,000 b/d coming from the Nasr field, which will be developed in two phases. The first phase will produce 25,000 b/d by 2015. The second will add 40,000 b/d by 2018.

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