More technical issues expected on Habshan carbon dioxide recovery tender

14 June 2011

Contractors expect further delays over specifications

Abu Dhabi Gas Industries (Gasco) has received technical submissions for the carbon dioxide (Co2) project at the Habshan oil field after repeated delays over equipment specifications. Contractors say they anticipate having to resubmit their bids as the problem remains unresolved.

The project, valued at a little more than $100m by bidding companies, is part of a wider programme to boost the recoverable reserves of the reservoir by injecting nitrogen and carbon dioxide into the field.

Technical engineering, procurement and construction (EPC) bids were submitted on June 13, after the deadline had been extended several times from the original date at the beginning of March. (MEED 18:02:11) The delays were caused by the involvement of Abu Dhabi Company for Offshore Operations (Adco) in the planning stage, according to sources.

Adco, which is part of the programme because of the Co2 component of the project, has insisted on compressors in the technical specifications that are unavailable on the market, says a source close to the project.

“[The delays are] related to the capacity of the compressors. The new capacity doesn’t seem achievable in the market, but that’s the one requested by Adco. We are seeing delays because they are not able to find anything with the new specs,” says the source.

Contractors say they do not know why Gasco has called for technical submissions when the specifications are likely to change, requiring them to resubmit their bids.

“I cannot understand why we have to submit with something that is probably going to change,” adds the source.

The companies submitting bids are:

  • Consolidated Contractors Company (Anthens-based)
  • CTIC (Taiwan)
  • Hyundai Engineering & Construction (South Korea)
  • Larsen & Toubro (India)
  • Punj Lloyd (India)
  • Samsung Engineering (South Korea)
  • SK Engineering & Construction (South Korea)
  • Technip (France)

The deadline for the commercial bids will be set after the evaluation of the technical bids has been completed.

Part of the recovered Co2 will be reinjected into the field together with 670,000 cubic metres a hour of nitrogen, which will be produced at the Elixier joint venture between Germany’s Linde and Abu Dhabi National Oil Company (Adnoc) at Mirfa.

Technical bids for the nitrogen injection project were submitted on May 10 and Gasco is currently evaluating the bids.

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