Italy’s Tecnimont has been awarded a $2.3bn deal to construct the third phase of the Al-Dabbiya oil field development in Abu Dhabi.

The engineering, procurement and construction (EPC) contract was awarded by Abu Dhabi Company for Onshore Oil Operations (Adco).

MEED revealed that Tecnimont submitted the low bid for the deal when Adco received commercial bids in September.

Other companies submitting bids are thought to include South Korea’s Daewoo and GS Engineering & Construction, UK-based Petrofac, Italy’s Saipem and Spain’s Tecnicas Reunidas.

The scope of the project includes: gathering crude oil system through a network of pipelines; central processing plant; and oil and gas export pipelines.

The contract represents the first major EPC deal for Tecnimont since the firm was awarded the Habshan 5 gas process plant for Abu Dhabi Gas Industries (Gasco) in 2009.

The North East Bab asset, where the Al-Dabbiya field is located, has the capacity to produce about 110,000 barrels a day (b/d) – about 8 per cent of Adco’s total production – and this capacity is due to be doubled after the third-phase expansion project’s completion.

MEED reported in April that the EPC contract for the Rumaitha and Shanayel development was awarded to a joint venture of South Korea’s GS Engineering & Construction and UAE-based Dodsal.

While Rumaitha and Shanayel are located onshore south of Abu Dhabi city, Al-Dabbiya lies in a shallow coastal marine area – one of the most environmentally sensitive areas of the emirate.