Abu Dhabi has yet to award the engineering, procurement and construction (EPC) contract for the estimated $1.5bn third phase of the Al-Dabbiya oil field development.  

Project owner Abu Dhabi Company for Onshore Oil Operations (Adco) received commercial EPC bids in September, with Italy’s Tecnimont emerging as the frontrunner for the award, according to sources familiar with the project.

However, the proposal must still be approved by Abu Dhabi National Oil Company (Adnoc) and the Supreme Petroleum Council (SPC) before a deal can be awarded.

Other companies that submitted bids for Al-Dabbiya phase three are thought to include South Korea’s Daewoo and GS Engineering & Construction, UK-based Petrofac, Italy’s Saipem and Spain’s Tecnicas Reunidas.

Adco took four months to announce the winner of its previous major field development contract – the third-phase development of the Rumaitha and Shanayel fields.

Whereas Rumaitha and Shanayel are located onshore south of Abu Dhabi city, Al-Dabbiya lies in a shallow coastal marine area – one of the most environmentally sensitive areas of the emirate.

The North East Bab asset, where the Al-Dabbiya field is located, has the capacity to produce about 110,000 barrels a day (b/d) – about 8 per cent of Adco’s total production – and this capacity is due to be doubled after the third-phase expansion project’s completion.

MEED reported in April that the EPC contract for the Rumaitha and Shanayel development was awarded to a joint venture of South Korea’s GS Engineering & Construction and UAE-based Dodsal.