PDO pushes on with Qarn Alam retender

15 September 2006
Petroleum Development Oman (PDO) has invited about 25 companies to express interest by 25 September for two engineering, procurement and construction (EPC) packages on the Qarn Alam enhanced oil recovery (EOR) project.
Petroleum Development Oman (PDO) has invited about 25 companies to express interest by 25 September for two engineering, procurement and construction (EPC) packages on the Qarn Alam enhanced oil recovery (EOR) project.

PDO decided to retender the project after prices submitted for the single EPC contract in the original round of bidding, came in almost double the $800 million-900 million budget. The original bidders were a team of Italys Saipem with Canadas SNC Lavalin; and Spains Tecnicas Reunidas (MEED 14:6:06).

The two packages in the retender will cover the offplots and the onplots work. The

scope of works for the offplots contract entails the installation of: a 95-kilometre-long pipeline

network and manifolds for the supply of 45,000 cubic metres a

day (cm/d) of raw water; a

13,000-cm/d wastewater

disposal system; a 22,500-tonne-a-day (t/d) steam distribution network; an oil and gas gathering network; a 14-kilometre utility pipeline network; and related facilities.

The onplots package will cover the installation of: a 25,000-

cm/d wastewater treatment plant; an 18,000-t/d steam generation plant; two frame 6 and frame 9 heat recovery steam generators (HRSGs); and an oil and gas

separation plant.

PDO is also evaluating options to tender some of the major long-lead items on a cost-plus basis. They include the HRSGs, the water treatment plant and gas compressors. The EOR project is aimed at increasing recovery rates from the field to 25 per cent from 4 per cent through steam injection. Raw water will be sourced from several wells located northeast of Qarn Alam.

Calgary-based MEG WorleyParsons, a wholly- owned subsidiary of Australias WorleyParsons, has prepared the front-end engineering and design (FEED) study.

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