Adnoc formally awards mega onshore EPC deal to Spanish firm

14 November 2018
MEED has previously reported operator Adnoc Onshore issuing the letter of award for the main contract

Abu Dhabi National Oil Company (Adnoc) has formally awarded a mega $1.4bn engineering, procurement and construction (EPC) contract to Spanish contractor Tecnicas Reunidas, for upgrading its Bu Hasa onshore oil field development.

MEED in October reported that Tecnicas Reunidas had been issued a letter of award by Adnoc Onshore, the field’s operator, for the Bu Hasa EPC works.

Adnoc in a statement said the EPC works are estimated to take around 39 months to be completed.

By way of this project, Adnoc seeks to increase the Bu Hasa field’s production from 500,000 barrels a day (b/d) to 650,000 b/d by 2020-end. Therefore, this project is vital to Adnoc achieving its strategic goal of raising output to 4 million b/d by 2020, and eventually to 5 million b/d by 2030.

The scope of work to upgrade and expand the Bu Hasa development includes installation of new pipeline networks and production hubs, provision of associated facilities, as well as the conversion of three trains in a central degassing station and other related facilities.

In addition to the incremental oil production from Bu Hasa, the project will streamline water handling, implement a second gas lift recovery phase and improve the overall production efficiency while reducing the number of inactive wells.

Tecnicas Reunidas has emerged successful in what has been a tight race for the EPC job, in which Adnoc’s In-Country Value (ICV) programme has played a decisive role in the bid evaluation process.

Tecnicas Reunidas beat proposals from four rival bidders, which were:

  • Larsen & Toubro (L&T, India)
  • China Petroleum Pipeline Engineering Corporation (CPPEC, China)
  • Saipem (Italy) / ENPPI (Egypt)
  • Petrofac (UK)

Following the first round of commercial proposals, Adnoc asked the bidders to submit revised bids by 17 September.

Both CPPEC and L&T had previously been considered frontrunners for the contract.

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