Abu Dhabi’s Zakum Development Company (Zadco) is expected to ask contractors to submit fresh bids for an early works contract preparing an artificial island for oil production facilities at the offshore Upper Zakum oil field.

Zadco is building four offshore islands at depths ranging from 6 metres to 14 metres to house drilling platforms and supporting infrastructure. A source close to the scheme says the main island is not complete and has not been handed over to Zadco.

The company tendered two phases of engineering, procurement and construction (EPC) deals for production facilities, known as EPC-1 and EPC-2. Commercial bids for EPC-1 were expected to be submitted in mid-December, but the deadline is now expected to be extended to the end of March 2012.

Zadco has already delayed commercial submissions at least twice from previous closing dates set for August and September (MEED 21:10:11). 

At least four firms submitted technical bids in July, including Hyundai Heavy Industries of South Korea, Jebel Ali-based J Ray McDermott, Italy’s Saipem and France’s Technip with the local National Petroleum Construction Company (NPCC).

France’s Technip is currently carrying out the front-end engineering and design (feed) for the oil facilities and pipelines. Originally scheduled for completion in January, the feed was still ongoing in late October.

Zadco is a joint venture of state-owned Abu Dhabi National Oil Company (Adnoc), US oil major ExxonMobil and Japan Oil Development Company.

The offshore oil and gas developer plans to increase oil production at the Upper Zakum field to 750,000 barrels a day (b/d) by 2015, costing an estimated $15bn, from current levels of about 500,000 b/d. Zadco hopes to maintain this plateau level for up to 25 years, recovering 70 per cent of the oil in the field.