National Petroleum Construction Company selected for Umm al-Lulu package two

31 July 2013

UAE group signs letter of intent with Abu Dhabi offshore operator on $1.4bn-plus deal

National Petroleum Construction Company (NPCC) has been selected for the second package of Abu Dhabi’s offshore Umm al-Lulu full field development, according to a source close to the deal.

Project operator Abu Dhabi Marine Operating Company (Adma-Opco) has signed a letter of intent with the Abu Dhabi-based contractor on the development’s largest engineering, procurement and construction (EPC) package. Market sources estimated the value of the contract to be more than $1.4bn.

NPCC was the lead bidder in a consortium with French engineering group Technip, winning the deal ahead of South Korea’s Samsung Engineering after commercial proposals were resubmitted in April.

Adma-Opco disqualified the original lowest bidder, Saipem, from the tender after it found issues with the Italian contractor’s proposal and asked Samsung and NPCC-Technip – the second- and third-lowest bidders – to resubmit bids with revised prices.

The scope of package two comprises the construction of a super complex consisting of a gas treatment platform, a separation platform, a riser platform, a utilities platform, an accommodation platform, a water disposal platform and two flare platforms.

In June, NPCC also won a $766m contract for the first package of the Umm al-Lulu full field development. The EPC work for package one comprises the construction and installation of six new wellhead towers, along with a riser platform topside, 90 kilometres of infield pipelines, 125km of main oil lines, fibre-optic cables (100km) and brownfield modifications on two existing wellhead towers at the field.

The full field development is phase two of Adma-Opco’s plan to commercialise Umm al-Lulu. Phase one early production facilities are already under construction at the field with India’s Larsen & Toubro winning a $225m EPC contract in September 2011 to build wellhead towers and other facilities.

Umm al-Lulu, along with the Nasr and Satah al-Razboot (Sarb) full field developments, are part of Adma-Opco’s plans to increase its total crude production to 1 million barrels a day (b/d) by 2020, up from the current 600,000 b/d.

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