UAE onshore oil projects face delays

20 November 2016

Two Abu Dhabi onshore oil field projects remain at technical bids phase

Two onshore oil projects in the UAE are facing delays at the engineering, procurement and construction (EPC) bid phase after contractors submitted technical proposals.

Abu Dhabi Company for Onshore Petroleum Operators (Adco) has yet to set a deadline for commercial EPC bids on the Qusahwira field phase two expansion and the South East Tie-In packages C & D.

Adco received technical EPC bids from several companies on the project to expand capacity at the Qusahwira field in June 2015. The contract is estimated to be valued at between $500m and $700m.

In July 2016, several companies submitted technical EPC bids for packages C and D of the South East Tie-In, which are estimated to be worth $350m combined.

The work includes tie-ins at different types of wells at fields in Adco’s South East Asset. Package C covers the Asab and Sahil fields, including facilities at 30 wells on the Asab field. Package D includes 40 tie-ins at wells on the Shah, Qusahwira and Mender fields.

Contractors do not have a clear timeline on when to submit prices for the EPC tender, according to industry sources.

Another Adco project to build a gas processing plant at the Al-Dabbiya field has been delayed at the EPC phase. The project was tendered in January 2016 and the technical EPC deadline has been extended several times.

Adco is a joint venture of Abu Dhabi National Oil Company (Adnoc), France’s Total, Japan’s Inpex and South Korea’s GS Energy. The onshore operator is expected to award more stakes to bring the interest held by international oil companies to 40 per cent.

Companies are also preapring to bid on the development of the onshore Haliba field, which is being developed by South-Korea-backed Al Dhafra Petroleum Operations Company.

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