Salman bid invitation expected soon

23 November 2001

National Iranian Oil Company subsidiary Petro Iran is preparing to release tender documents in early 2002 for the onshore and offshore packages on the Salman oil and gas field development scheme. The company is currently evaluating prequalification applications for both packages (MEED 12:10:01).

At least 16 international companies submitted prequalification proposals for the offshore package in late November following the extension of the original 30 October deadline. The project will be awarded on an engineering, procurement and construction (EPC) basis. The scope of work entails the supply of a wide range of platforms, including wellhead, riser and production platforms, the construction of a 240-kilometre gas export line, and the installation of oil and gas-gathering lines and gas lift and condensate lines.

Prequalification is also under way for the onshore package, which calls for the construction of a gas treatment facility at Bandar Assaluyeh linked to the Salman oil and gas field. It is understood that more than 10 international companies submitted prequalification documents for the EPC contract in September.

The gas treatment plant will be made up of two 500-cubic-feet-a-day processing units, with gas to be provided from the Salman field, which is located in the Dalan-Kangan (Khuff) reservoir, and from South Pars.

It is understood that negotiations between Petro Iran and France's Technipfor the onshore basic engineering package are complete, and a formal contract award is expected soon. The UK/Norwegian Kvaernerhas the front-end engineering and design (FEED) contract for the offshore development.

Petro Iran won the $850 million buy-back contract to develop the Salman oil and gas field last year. The deal involves rebuilding war-damaged facilities, upgrading oil production by 45,000 barrels a day (b/d) to 130,000 b/d and the development of an associated gas structure (MEED 17:11:00).

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