Engineering, procurement and construction (EPC) firms submitted a second set of technical bids for the first of two packages to build offshore production facilities at the Upper Zakum reservoir estimated to be worth more than $600m.

Of the six firms prequalified by Zakum Development Company (Zadco), a subsidiary of Abu Dhabi National Oil Company (Adnoc), four submitted technical bids in mid-May. The bidders are:

• Hyundai Heavy Industries (South Korea)
• J Ray McDermott (Jebel Ali-based)
• National Petroleum Construction Company (local)
• Saipem (Italy)

Amendments to the technical bids were submitted in July, and sources close to the project say contracts are still receiving new clarification requests from Zadco.

This makes the current deadline of 22 August for commercial submissions unlikely.  Contractors say they expect the deadline to until October.

Zadco aims to boost output to 750,000 barrels a day (b/d) from the current 500,000 b/d by adding production facilities housed on four artificial islands. Zadco hopes to maintain this plateau level for up to 25 years, recovering 70 per cent of the oil in the field.

The first package (EPC1) will raise production by 100,000 b/d, using both temporary and permanent production facilities. The winning contractor will also install subsea pipelines, riser platforms and flare structures, as well as completing brownfield work on existing facilities by 2014 (MEED 6:12:11).