EXCLUSIVE: Award of Adnoc Onshore contracts delayed

15 May 2018
The two packages are estimated to be worth a total of $500m

Abu Dhabi National Oil Company (Adnoc) subsidiary Adnoc Onshore has delayed the award of the contracts for two packages on its New Tie-In Southeast project.

Bidders were led to believe that the contracts would be awarded in April, according to industry sources.

“Adnoc Onshore has not given any reason for the delay,” one source said.

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

This is the second time that the packages have been tendered. Prior to the retender, an invitation for bids was issued in May 2016 and bids for the packages were submitted on 14 March 2017.

The decision to retender the packages was made in the last quarter of 2017.

One of the packages, known as Package C, is estimated to be worth $200m. It includes the supply and installation of new manifolds as well as tying-in existing wells at the Asab and Sahil fields.

The second package is known as Package D and is estimated to be worth $300m. It includes the supply and installation of new manifolds as well as tying-in existing wells at the Shah, Qusahwira and Mender fields.

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 the UAE-based engineering, procurement and construction (EPC) contractor 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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