Adco rethinks mega storage facility

18 May 2006
Abu Dhabi Company for Onshore Oil Operations (Adco) is expected to issue a new tender for its proposed mega crude oil storage tank project in the emirate, with major changes in the scope of works. Under the original tender, issued in late 2005, a 200,000-cubic-metre (cm) capacity facility was to be set up at Jebel Dhanna. Three companies Turkey's Tekfen, the local National Petroleum Construction Company (NPCC) and the UK's Whessoe Oil & Gas were due to submit commercial bids on 9 May for the engineering, procurement and construction (EPC) contract (MEED 16:12:05).

However, in early May, Adco informed the companies of a two-month delay in bid submission. 'The project is expected to be retendered with new capacity of 900,000 cm,' said an industry source. 'The location may also be changed, with Fujairah being considered as one probable site.'

In a related development, Adco has issued a notification to the project manager, Engineers India (EIL), stating that its contract will terminate with the issue of a new tender for the project. 'We will be parting ways on good terms and hope to receive an invitation to bid for the new PMC [project management consultancy] tender,' says an EIL official. Adco is expected to issue new tenders for PMC and front-end engineering and design (FEED) services. Austria's ILF Consulting Engineers carried out the original front-end engineering and design (FEED) package.

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