Bids submitted for fourth package of Sarb field development

06 January 2013

At least five commercial bids submitted for estimated $3bn Sarb contract, including four Korean groups

Abu Dhabi has received commercial bids from companies vying for the fourth package on its development of the Satah al-Razboot (Sarb) offshore oil field, according to bidding contractors.

At least five proposals were submitted to operator Abu Dhabi Marine Operating Company (Adma-Opco) for the estimated $3bn engineering, procurement and construction (EPC) contract, which covers the construction of an oil processing plant and associated facilities. Lead bidders for the package include South Korean contractors GS E&C, Hyundai E&C, Hyundai Heavy Industries, Samsung Engineering and SK E&C, as well as France’s Technip.

Adma-Opco received commercial EPC bids on 5 November for the smaller third package of Sarb, which covers the construction of offshore pipelines and platforms.

The projects form part of Adma-Opco’s plan to add 300,000 barrels a day (b/d) of production from four new offshore fields, with about 100,000 b/d coming from both the Sarb and Umm al-Lulu fields.

Commercial bids for the first Umm al-Lulu package were submitted on 6 November, but the deadline for proposals on the larger second package has been delayed until 9 January.

Adma-Opco is majority-owned by the state-run Abu Dhabi National Oil Company (Adnoc), with minority stakes held by UK-based BP, France’s Total and Japan Oil Development Company (Jodco).

Offshore developments are playing a key role in Abu Dhabi’s efforts to increase its crude production capacity to 3.5 million barrels a day (b/d) from today’s estimated 2.6 million b/d.

Abu Dhabi’s other major offshore operator, Zakum Development Company (Zadco), is expected to award an estimated $4bn EPC contract on the development of the Upper Zakum field in the first quarter of 2013.

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