First contract let on Al-Shaheen

02 June 2006
Abu Dhabi-based National Petroleum Construction Company (NPCC) signed in late May the first major construction contract on the $5,000 million Al-Shaheen oil field development project.

The estimated $150 million engineering, procurement, installation and commissioning (EPIC) contract covers packages 9 and 10 on the offshore development, which is being implemented by Maersk Oil Qatar (MOQ), the local subsidiary of Denmark's Maersk Oil & Gas (MEED 14:4:06).

NPCC beat off competition from Malaysia's Sime Darby and Jebel Ali-based J Ray McDermott (Middle East) to win the contract. Packages 9 and 10 cover the construction of five wellhead platform jackets, associated risers, three wellhead decks and two bridges between the proposed jackets and existing platforms. The jackets will be installed in water depths of 52-70 metres. The contract, which is due to be completed in late 2007, also includes load-outs, sea-fastening and offshore transportation.

The project is being carried out in several packages. Bids are due to be submitted by late August for three major fabrication and installation contracts involving five process platforms and related facilities. Due to be completed in late 2009, the project will increase production capacity at Al-Shaheen to 525,000 barrels a day (b/d) from 240,000 b/d.

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