EXCLUSIVE: Adnoc awards $450m of EPC contracts

12 July 2018
Contractors are selected for the New Tie-In Southeast packages after months of delays

Abu Dhabi National Oil Company (Adnoc) subsidiary Adnoc Onshore has awarded two contracts worth a total of $450m as part of its New Tie-In Southeast project.

The contract for package C is worth $180m and was awarded to Abu Dhabi-based Al-Asab.

This package includes the supply and installation of new manifolds as well as tying-in existing wells at the Asab and Sahil fields.

The contract for the second package, known as package D, is worth $270m and was awarded to Muscat-based Galfar Engineering & Contracting.

This package includes the supply and installation of new manifolds as well as tying-in existing wells at the Shah, Qusahwira and Mender fields.

Bidders were initially expecting contracts to be awarded in April this year.

After three deadline extensions, commercial bids were finally submitted on 18 March. Previous bid submission deadlines were 4 March, 4 February and 21 January.

These packages are among the first to be awarded using Adnoc’s In-Country Value system. There have been some initial challenges with the system and Adnoc has said it is considering altering some aspects of the process.

Package C and package D have been tendered before. An invitation for bids was first issued in May 2016 and bids for the packages were submitted on 14 March 2017. That first tender process was then cancelled and the decision to retender the packages was made in the last quarter of 2017.

It is not known exactly why Adnoc Onshore decided to retender the contracts.

The New Tie-In Southeast project is made up of four separate packages, two of which are already under execution.

The first two packages were awarded in October 2015. The contract for package A was worth $120m and was awarded to Al-Asab.

The contract for package B was worth $170m and was awarded to the Pakistani multinational Descon Engineering. Package B was due to be completed in April this year.

In November 2017, Adnoc announced it was planning to invest $109bn in its upstream and downstream businesses over five years.

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