Zadco launches Satah field development tenders

13 July 2010

Zadco’s delayed Satah field scheme to increase offshore production moves ahead

Abu Dhabi’s Zakum Development Company (Zadco) has launched the tender for the main engineering contract on its estimated $500m Satah full field development scheme.

The offshore oil developer released an invitation to bid on the main engineering, procurement and construction (EPC) contract on 29 June. Bidding firms have been asked to submit technical and commercial proposals for the deal by 30 August, sources close to the scheme tell MEED.

Prospective firms bidding on the deal include:

  • Hyundai Heavy Industries (South Korea)
  • J Ray McDermott (Jebel Ali-based)
  • National Petroleum Construction Company (UAE)
  • Petrofac (UK)
  • Saipem (Italy)
  • Technip (France)
  • Tecnicas Reunidas (Spain)

The EPC contract covers the construction of new offshore facilities, as well as the upgrading of existing facilities and pipelines at Satah, as part of a wider programme to boost production at the field. Contractors value the deal at about $500m.

The scheme has been delayed by more than a month to allow more time for the design of the project. Zadco told engineering contractors that it would release an invitation to bid by 16 May, with final priced bids on the project management consultancy (PMC) deal by the end of May. This was subsequently pushed back to June (MEED 21:5:10).

Five engineering firms submitted technical bids for the PMC deal to oversee the EPC contractors in February.

Under the development scheme, gas produced by Zadco will be injected into the Satah field to boost production to about 25,000 barrels a day (b/d) from undisclosed production levels currently. The field, which is located 200 kilometres northwest of Abu Dhabi, was first discovered in 1975 and production began in 1987. Oil is pumped to Zirku Island through a 58km pipeline.

Zadco plans to boost production at the three fields it operates to more than 800,000 b/d by 2015. The company wants to produce 750,000 b/d from the Upper Zakum field by 2015 and 70,000 b/d from the smaller Umm al-Dalkh reservoir.

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