Six bidders vying for $2bn UAE onshore oil project

04 July 2017

Prices submitted for Bab Integrated Facilities Expansion scheme in Abu Dhabi

Six groups have submitted prices for engineering, procurement and construction (EPC) work on the estimated $2bn Bab Integrated Facilities Expansion, one of the largest oil and gas projects in Abu Dhabi.

Commercial bids were submitted to project owner Abu Dhabi Company for Onshore Petroleum Operations (Adco) on 18 June, according to sources familiar with the project.

The following companies and consortia are vying for the contract:

  • China Petroleum Engineering & Construction Company (CPECC; China)
  • JGC (Japan) / National Petroleum Construction Company (NPCC; UAE)
  • Petrofac (UK)
  • Saipem (Italy)
  • SK Engineering & Construction (South Korea) / Intecsa (Spain)
  • Tecnicas Reunidas (Spain)

Adco received technical EPC bids in March, and extended the deadline for commercial bids twice from an initial submission date of 9 May.

Sources have heard contradictory information about which company submitted the lowest bid on the tender. Companies are likely to be contacted to be contacted by Adco in the coming weeks.

The scope of work involves installing new facilities at Adco’s Bab field, located 160 kilometres southwest of Abu Dhabi city. As part of the original scope, surface facilities would be delivered for the Thamama-A, Thamama-H and Thamama-B production zones to achieve a total sustainable oil production rate of 450,000 barrels a day (b/d).

Adco retendered the Bab Integrated Facilities Expansion scheme on 22 December, a year after cancelling a previous tender on the project. The new tender is thought to have a reduced scope of works and the estimated budget has been reduced from $3bn to about $2bn, sources told MEED.

Adco is a joint venture of Abu Dhabi National Oil Company (Adnoc) and six international oil companies. Adnoc this year completed the joint venture by awarding stakes to two Chinese companies.

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