Abu Dhabi’s Zakum Development Company (Zadco) has prequalified at least four international contractors to bid for a contract to build pipelines and early production facilities at the offshore Upper Zakum oil field.

Prequalification documents were submitted October, according to sources close to the scheme. Prequalified firms include:

• Saipem (Italy)
• Hyundai Heavy Industries (South Korea)
• J Ray McDermott (Jebel Ali-based)
• National Petroleum Construction Company (UAE)

A number of other firms have also said they are looking to form joint ventures to participate in the scheme, supplying early production facilities.

The project involves the construction of offshore pipelines and cables connecting new production facilities on four artificial islands and the existing satellite platforms with central onshore facilities.

France’s Technip is currently carrying out the front-end engineering and design (feed) for the oil facilities and pipelines, which has been subject to numerous revisions. Scheduled for completion in January, the feed is expected to be completed by the end of March.

According to one source close to the project, US oil major ExxonMobil, Adnoc’s joint-venture partner in the scheme, has mobilised its crew for the project, but Zadco has “not finalised its contracting strategy”.

Contractors say the project, which is estimated to be worth between $600-700m may be tendered at the end of the quarter.

Unpriced and technical bids will be submitted within 75 days. Priced bids will be submitted later upon completion of a bid clarification process by Zadco. Awards are planned for October 2011.

The deal is part of the offshore oil and gas developer’s plans to increase oil production at the Upper Zakum field to 750,000 barrels a day (b/d) from current levels of about 500,000 b/d by 2015, costing an estimated $15bn. Zadco hopes to maintain this plateau level for up to 25 years, recovering 70 per cent of the oil in the field.

Abu Dhabi National Oil Company (Adnoc) awarded the $626m contract for the construction of four artificial islands to house drilling platforms and supporting infrastructure to the local National Marine Dredging Company (NMDC) in November 2009 (MEED 6:11:09).  

The islands will be built at depths ranging from 6 metres to 14 metres and will cover an area of 2.6km by 2km. Completion of island construction and early civil works at South Island by October 2011. Civil works at the last island, West Island will be completed by September 2012.