Preliminary bids in for $700m Abu Dhabi pipeline deal

22 July 2010

Contract will be one of biggest pipeline deals in Abu Dhabi in recent years

Abu Dhabi Oil refining Company (Takreer) has received preliminary bids from international engineering firms for the estimated $700m contract to build a series of pipelines across the emirate.

At least eight bidders submitted technical proposals for the engineering, procurement and construction (EPC) deal to the state refiner by the 19 July bid deadline.

The contract covers the construction of more than 900 kilometres (km) of pipelines, ranging from 10 to 28 inches in size. It is one of the biggest pipeline deals to be tendered in the emirate in recent years. The main part of the deal covers a 230km pipeline linking the Abu Dhabi refinery with Takreer’s Ruwais refinery.

Other pipelines will link the Ruwais refinery, the Abu Dhabi refinery, the Al-Ain storage depot, the Mussafah distribution depot and Abu Dhabi International airport. The contract also covers the construction of around 24 oil storage tanks across the emirate. The winning firm will also build a network of closed-circuit television (CCTV) cameras along the route of the pipeline.

Firms and consortiums that bid on the deal include:

  • Samsung Engineering and Construction Company (South Korea) with Contracting & Trading (CAT) (Lebanon)
  • National Petroleum Construction Company (NPCC) (UAE)
  • SK Engineering & Construction (South Korea) with Consolidated Contractors Company (CCC) (Athens-based)
  • Technip (France) with China Petroleum & Engineering Corporation (China)
  • Dodsal (India)
  • Saipem (Italy)
  • GS Engineering & Construction (South Korea) with Punj Lloyd (India)
  • Al Jaber (UAE)

Takreer has set a 25 August deadline for commercial bids on the contract.

The project is part of a second-phase scheme to link the country’s refineries, known as the inter-refinery pipeline project (IRP) 2.

In May, South Korea’s Daewoo Engineering & Construcion was awarded the $270m contract to build a series of new storage tanks at Takreer’s Musaffah depot. The state refiner finalised the deal at a formal signing ceremony on 15 July.

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