Abu Dhabi to tender major gas field developments

22 March 2016

International engineering groups prequalified to bid on two offshore projects

Abu Dhabi is preparing to tender front-end engineering and design (feed) work for two major offshore developments, according to sources familiar with the projects.

State-owned Abu Dhabi National Oil Company (Adnoc) has prequalified several international engineering groups to bid for the feed contracts on the developments of the Hail and Ghasha gas fields, and the Dalma oil and gas field.

The Hail and Ghasha scheme plans to install 1 billion cubic feet a day (cf/d) of additional gas capacity from sour gas reservoirs at the offshore fields.

Five firms are understood to be prequalified to bid for the Hail and Ghasha feed deal:

US-based Occidental Petroleum (Oxy), which has a 40 per cent stake in the completed onshore Shah gas development, was awarded a $500m contract by Adnoc in February 2015 to carry out a technical evaluation at the Hail and Ghasha fields.

Oxy has cooperated with Adnoc on activities including 3D seismic surveys, drilling of appraisal wells and conducting of engineering studies necessary for the fields’ development. It was expected to take two years to carry out the technical evaluation of the two fields.

Earlier this week, Austria’s OMV revealed it had entered into a four-year agreement with Oxy and Adnoc to evaluate several undeveloped fields in the North West Offshore area of Abu Dhabi, including the Hail and Ghasha areas. However, it is unclear if this is connected with the sour gas development.

Dalma development

A second project aims to build the first platforms and pipelines at the Dalma field, which is located in the west of Abu Dhabi’s offshore territory between Dalma Island and the maritime border with Qatar.

Adnoc plans to build oil lines, but the priority will be to install the gas line first. According to sources, the planned capacity for the development is 350 million cf/d.

Five companies are thought to be prequalified to bid for the Dalma feed contract:

  • Amec Foster Wheeler (UK)
  • Fluor (US)
  • KBR (US)
  • Technip-Genesis (France)
  • WorleyParsons (Australia)

Genesis Oil & Gas, a consultancy that is a subsidiary of Technip, was commissioned to carry out the concept study for the scheme.

The two feed contracts are expected to be awarded later in 2016, after Adnoc receives and assesses the bids. 

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