OGD-3/AGD-2 tank package goes to the wire

07 January 2005
Final prices were submitted on 5 January for package 5 on the third phase of the onshore gas development (OGD-3) and the second phase of the Asab gas development (AGD-2) project in Abu Dhabi. The client, Abu Dhabi Oil Refining Company (Takreer), is expected to award the engineering, procurement and construction (EPC) package, covering new storage tanks at Ruwais, by the end of January.

Five international and local companies submitted third and final prices, with the local National Petroleum Construction Company (NPCC) and India's Punj Lloyd quoting almost identical bids of $56.8 million. Larsen & Toubro (L&T), also of India, submitted a price of about $58 million and was followed by Daelim Industrial Company and Samsung Corporation, both of South Korea.

The EPC contracts call for the construction of three 68,000-cubic-metre tanks and associated works. The project manager is US-based Parsons International.

The OGD-3/AGD-2 programme has been divided into five separate bid packages. There are three other EPC packages still to be awarded on the project. They are:

Package 1, for which commercial bids are due to be submitted on 25 January. The bidders are: NPCC, with Athens-based Consolidated Contractors International Company (CCC) and ILF Consulting Engineers of Austria;Sharjah-based Petrofac International, with Turkey's Tekfen; Italy's Snamprogetti,with Dubai-based Dodsal; and Paris-based Technip,with the local Al-Jaber Energy Services.

Estimated to be worth $200 million, the contract covers the construction of a gas gathering network for the Thamama F reservoir and reinjection facilities in the Asab area. The project manager is the US/Canadian VECO; the client is Abu Dhabi Company for Onshore Oil Operations (Adco);

Package 3, for which the first round of clarifications is due to start soon. Technical bids were submitted on 1 November. The bidders are the US-based Bechtel, Snamprogetti, Technip and JGC Corporation and Chiyoda Corporation, both of Japan. Worth $500 million-700 million, the scope of works on the contract covers the construction of gas treatment and natural gas liquids (NGL) recovery facilities to process 750 million cubic feet a day and an NGL pipeline to Habshan. Technical bids have also been submitted by four companies - VECO, Parsons and Foster Wheeler and Mustang Engineering, both of the US - for the position of project management consultant (PMC). The client is Abu Dhabi Gas Industries Company (Gasco);

Package 4, for which five companies are preparing to submit commercial bids on 25 January. They are Bechtel, JGC, Chiyoda, Snamprogetti and Technip. Estimated to be worth $500 million-700 million, the contract covers the construction of a new NGL train with capacity of 24,000 barrels a day, new storage tanks for propane, liquefied petroleum gas (LPG) and butane and two leading berths. For the PMC contract, commercial bids are due to be submitted in mid-January. The bidders are VECO, Parsons, Mustang and Foster Wheeler. The client is Gasco.

Bechtel was awarded in November package 2 on the OGD-3/AGD-2 project. Worth $1,460 million, the contract covers the expansion of the Habshan gas plant and the laying of a 110-kilometre export line to Ruwais (MEED 3:12:04).

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