Spanish contractor Intecsa Industrial is understood to be the low bidder for the Bab integrated facilities expansion project in Abu Dhabi, according to three sources close to the bidding process.

The lowest commercial bid, which sources said was in the region of $3bn, would put the group in poll position to win the largest upstream engineering, procurement and construction (EPC) contract in the UAE this year.

The project is planned by Abu Dhabi Company for Onshore Petroleum Operations (Adco) to increase the production capacity of its Bab onshore oil field.

Adco and Intecsa were unavailable to comment on the value of commercial bids, which were submitted on 29 June.

Intecsa is one of seven companies that bid for the EPC contract. The companies are:

• GS Engineering & Construction (South Korea)
• Intecsa Industrial (Spain)
• Petrofac (UK)
• SK Engineering & Construction (South Korea)
• Saipem (Italy)
• Tecnicas Reunidas (Spain)
• Tecnimont (Italy)

Adco is expected to assess the commercial proposals and award the EPC contract to the low bidder.

Another source familiar with the project said the identity of the low bidder was, at this stage, market speculation and had heard other contractors named as the frontrunner to win the deal.

When Adco originally shortlisted the bidders the estimated price of the tender was just over $2bn. However, the budget increased due to additional requests from Adco and the difficult logistics of the work, according to one source.

The project will install new facilities at Adco’s Bab field, located 160 kilometres southwest of Abu Dhabi city. Surface facilities will be delivered for the Thamama-A, Thamama-H and Thamama-B production zones to achieve a total sustainable oil production rate of 450,000 barrels a day (b/d).

The field is sour, with high hydrogen sulphide content, and Adco injects aquifer water into the producing zones to maintain pressure. Associated gas is separated at the Bab Central Degassing Station (BCDS) and delivered to Abu Dhabi Gas Industries (Gasco) for processing. Processed crude is pumped to the Adco export network.

Adco is a joint venture of Abu Dhabi National Oil Company (Adnoc), France’s Total, Japan’s Inpex and South Korea’s GS Energy. The onshore operator is expected to award more stakes to bring the interest held by international oil companies to 40 per cent.