First award on Salman

02 August 2002

The first offshore package has been awarded and proposals have been submitted for a second on the Salman oil and gas field development scheme. The client on the project, Jersey-registered Petro Iran, is also pressing ahead with the prequalification of companies for the estimated $200 million onshore package (MEED 14:6:02).

The local Saff Offshorehas been awarded the first out of three offshore packages on the Salman project. The $12 million engineering, procurement and construction (EPC) contract covers the construction and supply of two wellhead jackets.

Petro Iran has received five bids for a second offshore package. Local, European and South Korean companies are in the race for the estimated $80 million EPC contract to build a 240-kilometre gas export line, and install oil and gas-gathering, gas lift and condensate lines. Petro Iran is now carrying out the technical evaluation of the proposals, with a contractor set to be selected within a month.

Petro Iran has extended the deadline by a month to 19 September for the third offshore package following a request from bidders.

The EPC contract covers seven platforms and two bridges. It is understood that South Korea's Hyundai Engineering & Construction Company, Malaysia's SSEand the local Iran Shipbuilding & Offshore Industries Company (ISOICO)are among the companies preparing to bid for the estimated $200 million-250 million contract.

The UK's Kvaerner E&Ccarried out the front-end engineering and design (FEED) for the offshore development.

Petro Iran is pressing ahead with the evaluation of prequalification documents submitted in September 2001 by more than 10 international companies for the project's onshore package. EPC bids are expected to be invited in October following the completion of the basic engineering by Paris-based Technip-Coflexip.

The Salman onshore facilities will include a gas treatment plant with two 500-cubic-feet-a-day processing units. Gas will be provided from the Salman field, which is located in the Dalan-Kangan (Khuff) reservoir, and from South Pars.

The development of the Salman oil and gas field involves rebuilding war-damaged facilities, upgrading oil production by 45,000 barrels a day (b/d) to 130,000 b/d and the development of an associated gas structure.

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