Abu Dhabi has cancelled an estimated $500m project aimed at sustaining crude production from the offshore Umm Shaif field, according to sources familiar with the scheme.
A spokesman for Abu Dhbai National Oil Company (Adnoc) said that the project was not being pursued for technical reasons.
Engineers determined that the project was not required as the gas to oil ratio of the field was controlled to maintain production levels, he said.
Project owner Abu Dhabi Marine Operating Company (Adma-Opco) received engineering, procurement and construction (EPC) bids in October 2015 from three companies vying for work on the Umm Shaif oil network expansion project.
UAE-based National Petroleum Construction Company (NPCC) emerged as the frontrunner to win the contract after submitting the lowest bid, sources told MEED. The other bidders were US-based McDermott and the UKs Petrofac.
Commercial EPC bids were submitted in October, more than a year after the companies lodged technical bids, leaving a lengthy delay in the projects pre-execution phase.
Adma-Opco aims to sustain the average annual output of the Umm Shaif field at 275,000 barrels a day (b/d) by enhancing the existing infield oil gathering network to sustain the production target.
The infield pipelines transfer crude from the field to the offshore processing platform from where the oil is transported to Das Island for storage and export.
Adma-Opco plans to install a new manifold tower and riser platform along with the installation and modification of several other facilities.
Adma-Opco is a joint venture of state-owned Abu Dhabi National Oil Company (60 per cent), the UKs BP (14.67 per cent), Frances Total (13.33) and Japanese Oil Development Company (Jodco; 12 per cent).
The operator has the capacity of 500,000-600,000 b/d largely from two major fields Umm Shaif and Lower Zakum. The operator is currently carrying out full-field developments at the Nasr, Satah al-Razboot (Sarb) and Umm al-Lulu fields.