Hyundai Heavy Industries selected for Barzan offshore deal

23 November 2010

Estimated $800m contract goes to South Korean firm

South Korea’s Hyundai Heavy Industries (HHI) has been selected by Qatar Petroleum (QP) and its joint venture partner US oil major ExxonMobil for the offshore contract of the Barzan gas development.

The other bidders have been informed and the firm is now waiting for a formal announcement for the estimated $800m engineering, procurement and construction deal, which it expects before the end of the year, a source close to the projects tells MEED.

Four firms; HHI, Jebel Ali-based J Ray McDermott, the UAE’s National Petroleum Construction Company and Italy’s Saipem; all submitted technical bids in July and commercial bids in August for the Barzan offshore deal (MEED 22:7:10).

HHI will build three unmanned offshore wellhead platforms, two 34-inch wet gas pipelines running 72 kilometres to the shore, two intra-field pipelines and onshore pipelines to gas reception facilities.

The deal is HHI’s first offshore platform contract Qatar, although the firm has previously won work in the emirate building liquefied natural gas (LNG) carriers for state-owned carrier, Nakilat from 2005 and onshore gas processing facilities for Shell’s Pearl gas-to-liquids project in 2006.

Prices for the onshore portion of the Barzan phase one development, worth an estimated $1.7bn were submitted on 5 November, although the lowest price bidder has not yet been announced. Each of the four bidding groups has been invited to a series of two-day meetings with QP and ExxonMobil, beginning on 22 November. These include:

  • Technip (France)
  • Saipem (Italy)
  • Chiyoda Corporation (Japan), Samsung Engineering (South Korea)
  • JGC (Japan)

The Barzan development aims to produce 6.2 billion cubic feet a day (cf/d) of natural gas to meet the growing requirements of Qatar’s power and water generating companies, as well as providing potential feedstock for downstream petrochemicals production.

Phase one is due for completion by the end of 2013 and involves the construction of two onshore gas processing trains capable of handling 850 million cf/d each, along with gas sweetening units, amine recovery units, storage and loading facilities, as well as offsites and utilities.

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