• Bab deal is largest upstream contract in UAE this year
  • New facilities will be installed at oil field
  • Abu Dhabi Company for Onshore Petroleum Operations is assessing bids

Seven companies have submitted commercial proposals on the estimated $2bn Bab integrated facilities expansion project in Abu Dhabi, according to sources familiar with the scheme.

Project operator Abu Dhabi Company for Onshore Petroleum Operations (Adco) received bids for the engineering, procurement and construction (EPC) tender on 29 June.

According to sources, all seven companies which submitted technical bids earlier in the year are still vying for the contract. The companies are:

The deadline for commercial bids was extended from 1 June to give Adco more time to finalise technical qualification.

Adco is expected to assess the commercial proposals and award the EPC contract to the lowest-priced bidder. It is not yet clear which company is the frontrunner to win the deal.

The project will install new facilities at Adco’s Bab field, located 160 kilometres southwest of Abu Dhabi city. Surface facilities will be delivered for the Thamama-A, Thamama-H and Thamama-B production zones to achieve a total sustainable oil production rate of 450,000 barrels a day (b/d).

The field is sour, with high hydrogen sulphide content, and Adco injects aquifer water into the producing zones to maintain pressure. Associated gas is separated at the Bab Central Degassing Station (BCDS) and delivered to Abu Dhabi Gas Industries (Gasco) for processing. Processed crude is pumped to the Adco export network.

Adco is a joint venture between Abu Dhabi National Oil Company (Adnoc), France’s Total, Japan’s Inpex and South Korea’s GS Energy. The onshore operator is expected to award more stakes to bring the interest held by international oil companies to 40 per cent.  

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