Larsen & Toubro wins two Abu Dhabi oil contracts

09 August 2011

Offshore Umm Lulu and Nasr fields plus Habshan to Ruwais pipeline

India’s Larsen & Toubro has won two engineering, procurement and construction (EPC) contracts in the UAE worth more than $639m.

The first deal was awarded by Abu Dhabi Marine Operating Company (Adma-Opco), a subsidiary of state-owned Abu Dhabi National Oil Company (Adnoc) to Larsen & Toubro Hydrocarbon’s Upstream Business Group.

The firm beat four other firms to the $450m deal, which covers early production facilities for the first phase of the Nasr and Umm Lulu field developments. The bidders were:

  • National Petroleum Construction Company (UAE)
  • Larsen & Toubro
  • Saipem (Italy)
  • Technip (France)
  • Hyundai Heavy Industries (South Korea)

Larsen & Toubro will now build four wellhead towers and a manifold tower platform, connecting bridges and associated sub-sea pipelines.

The deal is part of Adma-Opco’s plan add 300,000 barrels a day (b/d) of additional production from four new offshore fields. About 100,000 b/d will come from the Umm Lulu field, with the remaining 65,000 b/d coming from the Nasr field, which will be developed in two phases. The first phase will produce 25,000 b/d by 2015. The second will add 40,000 b/d by 2018.

The second contract, worth $189m covers the construction of a gas pipeline for Abu Dhabi Gas Industries (Gasco) running from gas processing facilities at the Habshan field in the south east of Abu Dhabi to Ruwais on the Gulf coast and on to Shuwaihat.

The 123-kilometre pipeline will carry methane and ethane-rich lean gas and is expected to be commissioned in 24 to 26 months.

Larsen & Toubro beat rival proposals from Athens-based Consolidated Contractors Company (CCC), Punj Lloyd and Dodsal, also of India, and Saipem when bids were submitted at the end of June (MEED 28:6:11).

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