Umm al-Lulu package two hangs in balance after bid resubmission

15 May 2013

NPCC submits lowest revised proposal after Saipem disqualified from bidding process

The award for the second package on Abu Dhabi’s Umm al-Lulu oil field development still hangs in the balance after the original low-bidder Saipem was disqualified earlier this year.

Project operator Abu Dhabi Marine Operating Company (Adma-Opco) asked the second and third lowest bidders – South Korean group Samsung Engineering and the UAE’s National Petroleum Construction Company (NPCC) – to resubmit engineering, procurement and construction (EPC) bids with revised prices.

The consortium of NPCC and its France-based bidding partner Technip emerged as the new frontrunner after prices were resubmitted on 24 April.

However, according to a source close to the bidding process, a deviation in the NPCC-Technip bid needs to be approved by Abu Dhabi for the contract to be awarded.

The consortium has changed the proposed base of its engineering works on the package from Paris to Abu Dhabi to reduce costs, the source said, which could violate the terms set by Adma-Opco for the bid resubmission.

MEED reported in mid-April that Italy-based Saipem had been disqualified from the bidding process despite submitting the lowest commercial proposal of about $1.5bn for the oil field development package.  

The contract for package covers the construction of gas-processing and oil separation platforms, utilities, accommodation and associated facilities at the Umm al-Lulu field, located 30 kilometres northwest of Abu Dhabi.

NPCC submitted the lowest bid of about $800m for the first package of the Umm al-Lulu full field development and is still expected to win this contract. Package one covers the construction of wellhead towers, platforms and associated facilities.

The Umm al-Lulu full field development project forms part of Adma-Opco’s plan to add 300,000 barrels a day (b/d) of production capacity from new offshore fields, with about 100,000 b/d coming from Umm al-Lulu.

Adma-Opco is majority-owned by Abu Dhabi National Oil Company (Adnoc), with minority stakes held by the UK’s BP, France’s Total and Japan Oil Development Company (Jodco).

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