Petrofac wins $515m contract on Sarb offshore development

05 February 2013

London-based contractor awarded Abu Dhabi upstream project’s third package ahead of seven bidders

The UK’s Petrofac has been awarded a $515m contract for a package on Abu Dhabi’s Satah al-Razboot (Sarb) offshore oil field development, according to sources close to the bidding process.

The third package on the Sarb project, which was tendered by Abu Dhabi Marine Operation Company (Adma-Opco), covers the development’s offshore pipelines and platforms and associated facilities.

Petrofac submitted the lowest commercial engineering, procurement and construction (EPC) bid out of eight competing companies on the 5 November deadline.

Adma-Opco has tendered four separate packages for the Sarb field, located 120 kilometres to the northwest of Abu Dhabi city.

The fourth and largest package, covering the oil processing plant and associated facilities, is expected to be awarded to Hyundai Engineering & Construction after the South Korean contractor submitted the lowest bid of about $1.88bn in early January.

The second package, to construct accommodation and administration buildings and associated facilities, is also in the bidding stage after it was tendered in June 2012, but has yet to be awarded.

The estimated $200m package one, which includes site preparation works, seawater intake and the construction of a jetty, was awarded to Geneva-registered Archirodon in July 2012.

The project forms part of Adma-Opco’s plan to add 300,000 barrels a day (b/d) of production capacity from four new offshore fields, with about 100,000 b/d coming from Sarb.

Adma-Opco is majority-owned by Abu Dhabi National Oil Company (Adnoc), with minority stakes held by the UK’s BP, France’s Total and Japan Oil Development Company (Jodco).

Petrofac is looking to have a successful start to the year in Abu Dhabi’s offshore sector. Industry sources say the London-based group are the frontrunners for a $3.79bn EPC contract on Zakum Development Company’s (Zadco) Upper Zakum field development through a consortium with South Korea’s Daewoo Shipbuilding & Marine Engineering.

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