Adnoc receives offshore oil project technical bids

19 September 2023
Adnoc Offshore intends to raise the oil production capacity of the Lower Zakum offshore hydrocarbon concession in the short- to mid-term through this project

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The offshore arm of Abu Dhabi National Oil Company (Adnoc Offshore) has received technical bids from contractors for a project to swiftly boost oil production at the Lower Zakum offshore hydrocarbons concession in Abu Dhabi.

The Lower Zakum hydrocarbons zone is 65 kilometres northwest of Abu Dhabi in the Gulf’s waters.

Adnoc Offshore holds the majority 60 per cent stake in the Lower Zakum asset. Foreign partners include an Indian consortium of companies led by ONGC Videsh (10 per cent), Japan’s Inpex Corporation (10 per cent), China National Petroleum Corporation (10 per cent), Italy’s Eni (5 per cent) and France’s TotalEnergies (5 per cent).

Adnoc Offshore and its partners in the Lower Zakum concession intend to sustain oil production from the asset at its current level of 450,000 barrels a day (b/d) until 2025, and then increase output to 470,000 b/d.

This target will be achieved through the Lower Zakum early production scheme 2 (EPS 2) and proved developed producing (PDP) project.

Contractors submitted technical bids for the engineering, procurement and construction (EPC) works on the Lower Zakum EPS 2/PDP project by 11 September, according to sources.

The following contractors, among others, are understood to have submitted technical bids for the project, sources told MEED:

  • China Petroleum Engineering & Construction Company (China)
  • McDermott (US)
  • National Petroleum Construction Company (UAE)
Lower Zakum EPS 2/PDP project

The basic scope of work on the project involves drilling 17 additional producer and water injection wells on two new wellhead towers (WHTs) and expanding the gas compression capacity of the Zakum West Super Complex (ZWSC).

Integrating the Lower Zakum complexes with the onshore power grid at UZ AGI for electricity supply to the EPS 2/PDP project is part of the scope.

Demolition of structures and as-built documentation and surveying are also included in the scope of work.

UK-headquartered Wood Group has performed front-end engineering and design (feed) work on the Lower Zakum EPS 2/PDP project. Adnoc Offshore awarded Wood the feed contract in November last year, as per sources.

Adnoc Offshore solicited interest for the Lower Zakum EPS 2/PDP project EPC works in December last year. Contractors expressed interest in participating in the main EPC contract tendering process in January.

Lower Zakum LTDP-1 project

Raising oil and gas production from the Lower Zakum asset is vital for Adnoc to achieve its accelerated target of increasing oil production capacity to 5 million b/d by 2027, and raising gas output potential by 3 billion cubic feet a day (cf/d) by the end of this decade.

While the EPS 2/PDP project is anticipated to increase the Lower Zakum concession’s oil production potential to 470,000 b/d by 2027, Adnoc Offshore’s larger, longer-term objective is to raise the asset’s output capacity to 520,000 b/d by 2027 and maintain that level until 2034.

This strategic goal will be accomplished through the Lower Zakum Long-Term Development Plan (LTDP-1) project.

Feed work is progressing on the Lower Zakum LTDP-1 project and is being performed by France’s Technip Energies.

According to sources, Adnoc Offshore awarded Technip Energies the contract in November last year. The operator expects feed work on the project, which began in December last year, to be completed by January 2024.

Adnoc Offshore began the main contract prequalification process for the EPC works on the Lower Zakum LTDP-1 project in March this year. Contractors were initially asked to submit expression of interest documents by 10 April, with the deadline eventually extended until 27 April.

The detailed scope of work on the Lower Zakum LTDP-1 project is as follows:

Topside facilities on G Island – Civil works on process facilities and associated buildings on the artificial greenfield G Island.

Process facilities include well pads, inlet and export reception, production separation, export pumps, gas compression, dehydration and lift, produced water treatment and disposal, vapour recovery units, water injection units, riser tower, flare towers, accommodation, drilling of high-pressure flare knock out drum, power distribution facility, substations and local equipment rooms.

Offshore WHTs and pipelines – Seven WHTs will be installed: six in the east area, and one in the AGI area. Five of the WHTs are to be 16-slot, while the two others are to be 9-slot.

Das Island Terminal, ZCSC and ZWSC – The five existing oil processing trains at the Lower Zakum offshore development are to be decommissioned in 2028, with the new configuration of the main processing plant at Das Island to be:

  • Two existing trains with a processing/stabilisation capacity of 110,000 b/d each
  • Three new trains with a processing/stabilisation capacity of 150,000 b/d

The scope of work also covers the installation of other structures such as:

  • Three high-pressure separator trains
  • High-pressure scrubber
  • Three low-pressure separator trains
  • Low-pressure scrubber
  • Three atmospheric separator trains
  • Four crude charge pumps
  • Three crude charge heaters
  • Three cold strippers integrated with a degassing vessel
  • Six stripped crude product pumps
  • Common ejector with a spare for three cold strippers
  • Closed drain drum with transfer pump
  • Blow case vessel

As per the schedule, Adnoc Offshore expects to issue the project’s main EPC tender in December, with the award of contracts to take place in March next year.

The operator expects the Lower Zakum LTDP-1 project to be commissioned by the end of 2027.

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