Bids in for Dubai oil field facilities

24 June 2010

Around five firms submitted technical and commercial proposals on 23 June

Around five international engineering firms have submitted bids for the $50-100m contract to build oil production facilities at the newly-discovered Al-Jalila field in Dubai.

Contractors handed in the technical and commercial proposals for the contract to Dubai Petroleum Enterprise on 23 June. They had initially been asked to submit bids on 1 July, but the deadline was moved back in late May.

The engineering, procurement, installation and commissioning (EPIC) contract covers a basic unmanned offshore production platform with a single compressor unit and about 12 kilometres of flowlines to transport oil produced at the field to DPE’s onshore processing and distribution facilities.

Engineering executives value the contract at about $50-100m.

Contractors approached to bid on the deal by Dubai Petroleum are understood to include Paris-based Technip, Dubai-based J Ray McDermott, and Abu Dhabi-based National Petroleum Construction Company.

The discovery was made to the east of the existing Rashid field, Dubai’s ruler Sheikh Mohammed bin Rashid al-Maktoum said in a February statement. The ruler’s office has declined to comment on the size of the new field, potential output or a timeline for its development.

Sources with knowledge of the project estimate that it will produce around 5,000-10,000 barrels a day (b/d) of oil at most.

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