Abu Dhabi’s Zakum Development Company (Zadco) has issued the tenders for a crude storage project at its processing operations on Zirku Island.

The estimated $30m project covers the construction of a seventh crude oil storage tank with the capacity to hold 1 million barrels on the island 160 kilometres off the coast of Abu Dhabi.

Interested contractors are expected to submit engineering, procurement and construction (EPC) bids by the middle of December, according to a prospective subcontracting company. The group has been approached by four EPC contractors to submit subcontract proposals by 3 December.

The EPC contract is expected to be awarded during the first quarter of 2013, with the project likely to be commissioned by 2015.

Zadco is a joint venture of state-owned Abu Dhabi National Oil Company (Adnoc), US oil major ExxonMobil and Japan Oil Development Company.

The company is also planning a significant increase in its oil processing capacity on Zirku Island to handle additional crude from the expansion of oil production from the offshore Upper Zakum field.

Zadco tendered the front-end engineering and design (feed) contract for the processing expansion during October.