Italy’s Eni, the developer of the Zubair oil field in the south of Iraq, has increased the scope for one of three major tenders for crude oil production facilities.
The Italian firm had planned to build two trains of early production facilities (EPF) at the field, but the scope of work has now been tripled to six trains, which have been rebranded initial production facilities (IPF), sources close to the project tell MEED.
Tendered in April 2011, the size of the bidding list has gradually decreased as Eni has increased the scope. Three companies have now been shortlisted:
- Unaoil (Monoco-based) and Rosseti Marino (Italy)
- Weatherford (US)
- Schlumberger (US)
The field’s joint management committee, which includes representatives of state-owned South Oil Company, Eni and the other shareholders in the field’s development, could retender the contract, according to one source.
“It is a pretty big change. West Qurna-2 is nine trains and that is huge, $1bn. The original bidders can’t handle a job of this size,” says the source.
In late January, South Korea’s Samsung Engineering was approved for a $1bn deal to build nine EPF trains at the West Qurna Phase-2 field.
Eni held a number of technical clarification meetings in Italy with bidding firms on 13 and 14 February for a brownfield deal covering the refurbishment of the Zubair field’s existing facilities. No commercial deadline has been set, but bidding firms say they expect to hand in price proposals in March. Technical bids were submitted in September by three Italian firms; Bonatti, Techint and Tecnimont; Punj Lloyd of India and Dubai-based Dodsal.
Bids were also submitted on 14 February for Eni’s delayed greenfield production facilities scheme. At least three firms submitted bids, including Italy’s Saipem, the UK’s Petrofac with Japan’s JGC Corporation, Samsung Engineering and Hyundai Engineering & Construction, also of South Korea.