Contractors line up for Zadco pipeline replacement

13 April 2008

Six international and local contractors are understood to be preparing to submit technical bids by 6 May for the contract to replace the Zakum main oil line, belonging to Zakum Development Company (Zadco).

Worth about $300m, the lump-sum engineering, procurement and construction contract covers the fabrication and installation of a 60-kilometre-long, 42-inch-diameter steel pipeline from the offshore Zakum central complex to Zirku island (MEED 17:11:06).

The pipeline will be laid parallel to the existing line and at water depths of up to 21 metres. The existing main oil line, installed in 1982, has suffered heavy corrosion, with significant metal loss and reduction in wall thickness.

The six prequalified contractors are Global Industries and J Ray McDermott, both of the US, Larsen & Toubro and Punj Lloyd, both of India, the local National Petroleum Construction Company (NPCC), and Italy’s Saipem. Commercial offers are due in on 2 September, with an award due soon after.

JP Kenny, part of the UK’s Wood Group, is the front-end engineering and design consultant. Three companies are understood to be bidding for the project management consultant position.

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