Hyundai E&C awarded $1.88bn Satah al-Razboot contract

02 April 2013

South Korean group wins largest package on Abu Dhabi offshore development

Hyundai Engineering & Construction (Hyundai E&C) has won a $1.88bn contract on the development of Abu Dhabi’s offshore Satah al-Razboot (Sarb) oil field.

The South Korean group, which MEED reported in January had submitted the lowest commercial bid on Sarb full field development package four, confirmed the award in a regulatory filing.

Project owner Abu Dhabi Marine Operating Company (Adma-Opco) tendered the engineering, procurement and construction (EPC) package to cover the project’s main oil processing plant and associated facilities.

Among the other bidders were South Korean groups GS Engineering & Construction, Hyundai Heavy Industry (HHI), Samsung Engineering and SK Engineering & Construction, and France’s Technip.

The EPC phase is expected to be completed in 54 months from March 2013, according to Hyundai E&C.

The project is part of Adma-Opco’s plan to add 300,000 barrels a day (b/d) of production capacity from new offshore fields, with about 100,000 b/d coming from Sarb, which is located 120 kilometres to the northwest of Abu Dhabi city.

Earlier in the year, UK-based Petrofac won a $515m EPC contract on the project’s third package.

“The onshore facilities EPC work undertaken by Hyundai E&C covers processing, storage and export facilities on Zirku Island and wellhead facilities on two artificial islands,” said Ali Rashed al-Jarwan, Adma-Opco chief executive officer (CEO), at the signing ceremony.

“The offshore works undertaken by Petrofac mainly include about 200km of subsea pipelines, 55km of subsea cables, a single-point mooring crude loading facility, four offshore flares and two riser platforms in addition to drilling utilities on the artificial islands,” he added.

The second package, to construct accommodation and administration buildings and associated facilities, is also in the bidding stage after it was tendered in June 2012, but has yet to be awarded. According to a source, commercial EPC bids for the package were submitted on 1 April.

The estimated $200m package one, which includes site preparation works, seawater intake and the construction of a jetty, was awarded to Geneva-registered Archirodon in July 2012.

Adma-Opco is majority-owned by Abu Dhabi National Oil Company (Adnoc), with minority stakes held by the UK’s BP, France’s Total and Japan Oil Development Company (Jodco).

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