Contractors bidding for the estimated $500 million expansion of the Satah full field development expect to submit commercial offers in the first week of March.

“There will have to be some clarifications between Zakum Development Company (Zadco) and us. It looks like the deadline will be in the first week of March, but this is not confirmed,” says a source close to the project.

The technical bids have already been submitted. The bidders are:

• Petrofac (local)
• National Petroleum Construction Company (NPCC) (local)
• Saipem (Italy)
• Larsen & Toubro (India)
• McDermott Arabia Company (McDermott) (local)
• Hyundai Heavy Industries (HHI)(South Korea)

Zadco wants to boost the production from the Satah offshore field to around 25 000 barrels a day (b/d), and will be resorting to enhanced oil recovery to achieve this. Associated gas will be piped back to the oil field after being separated from the crude on Zirku Island, and re-injected into the reservoir.

The project encompasses both offshore and onshore work. It scope includes a 20km, 14 inch carbon steel subsea pipeline, gas compressors, separators and a fuel gas treatment unit.

Zadco also operates the Upper Zakum and Umm al-Dalkh offshore fields.

The company is majority-owned by the Abu Dhabi National Oil Company (Adnoc), which holds a 60 per cent stake, ExxonMobil, which holds 28 per cent and 12 per cent being owned by the Japan Oil Development Company (Jodco).