All eyes on Umm Shaif gas reinjection award

13 April 2006

Abu Dhabi Marine Operating Company (Adma-Opco) is considering its options for the main engineering, procurement and construction (EPC) contract on the Umm Shaif gas reinjection project, following the opening of commercial prices in early April. Just one bid, from South Korea's Hyundai Heavy Industries Company, was opened, after the quote from the second bidder, Abu Dhabi-based National Petroleum Construction Company (NPCC), was judged to be technically non-compliant (MEED 21:1:05).

'In effect, Hyundai is now the sole bidder and its offer of about $1,700 million is about twice the client's budget,' says an Abu Dhabi-based industry source. 'With major escalations in the prices of materials and services, Adma-Opco is carrying out due diligence and is now formulating a price index. It will be used as a benchmark to determine whether Hyundai's price is valid.'

The project involves the supply and installation of three platforms, subsea pipelines and modifications to wellhead towers.

It also entails a mega compression platform to be located two kilometres from the existing Umm Shaif super complex (USSC) and connected to an accommodation platform. A third new platform, accommodating an oil separation unit, will also be installed to connect to the existing USSC.

The new facilities will have capacity to dehydrate and inject 600 million cubic feet a day (cf/d) of sour gas into the Arab C and D reservoirs to improve oil reservoir pressure. They will also be able to handle 305,000 barrels a day (b/d) of oil, 1,000 million cf/d of associated gas and 125,000 b/d of water. Australia's WorleyParsons has carried out the front-end engineering and design (FEED) optimisation study.

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