Zakum Development Company (Zadco) has prequalified bidders for the first engineering, procurement and construction (EPC) contract to increase production at the Upper Zakum reservoir off the shores of Abu Dhabi.

Zadco is looking to boost output to 750,000 barrels a day (b/d) from the current 500,000 b/d by adding offshore production facilities and creating four artificial islands to accommodate onshore facilities.

The Abu Dhabi National Oil Company (Adnoc) subsidiary will award two EPC contracts. The first, EPC1, will increase output by 100,000 b/d.

The prequalified companies are:

  • Hyundai Engineering & Construction (South Korea)
  • Hyundai Heavy Industries (South Korea)
  • McDermott (US)
  • National Petroleum Construction Company (local)
  • Larsen & Toubro (India)
  • Saipem (Italy)

The companies have been asked to make technical submissions on 16 May. Commercial bids are due to be submitted on 22 August.

EPC1’s scope includes both temporary and permanent facilities. The winning contractor will install subsea pipelines, cabling, riser platforms and flare structures, as well as completing brownfield work on existing facilities.

Completion is envisaged for 2014, and the facilities will start production while the second phase is completed under the EPC2 scope. The second phase will increase production by an additional 150,000 b/d.

The four islands are currently being raised from the sea floor by National Marine Dredging Company. The islands will be ready for use between the second quarter of this year and the first quarter of 2013.

In a third phase, smaller projects will ensure that production capacity is maintained for the coming 25 years.

France’s Technip are currently undertaking the front-end engineering and design (feed) work. The UK’s Amec has been appointed to undertake the project consultancy for the entire scheme.