Abu Dhabi’s Zakum Development Company (Zadco) has tendered a new contract as part of a $50m-plus upgrade of its Zirku Island oil processing and distribution facilities.

The contract covers the construction of a new 12 -inch pipeline to replace an existing transit route

Zadco, a subsidiary of state energy firm Abu Dhabi National Oil Company (Adnoc), uses Zirku as its main base of operations. The island is located 140 kilometres north west of Abu Dhabi.

The engineering, procurement and production (EPC) contract covers the construction of a new 12 -inch pipeline to replace an existing transit route. The project is part of a wider scheme to upgrade the company’s oily water treatment and disposal facilities.

Zadco sent bid documents out to contractors on 14 July and has given them until 23 August to submit their initial technical proposals for the contract. The company has not yet set a deadline for commercial bids, but executives with knowledge of the scheme tell MEED that they expect to hand them in by late October or early November.

A contract award is expected before the end of the year.

Zadco plans to tender the second part of the project in mid-2011. Details of this part of the scheme are not yet known.

Sources close to the project tell MEED that around six international and local contractors have been prequalified to bid on the project.

In July Zadco issued tenders for the Satah field development (MEED 16:7:10)