Five players are battling it out for a key onshore engineering, procurement and construction contract from Abu Dhabi National Oil Company (Adnoc) involving further development of the Bu Hasa field, with the project thought to be worth well above $1 billion.
Several industry sources close to the tender process told Upstream that technical offers for the onshore job were recently submitted by five contractors or consortia, with commercial bids expected to be submitted within a month or two.
Those believed to have submitted technical bids include UK player Petrofac, Indian engineering giant Larsen & Toubro, Spain’s Tecnicas Reunidas, China Petroleum Engineering & Construction Corporation (CPECC) and a consortium comprising Italy’s Saipem with Egypt’s ENPPI, project watchers claimed.
The tender process for the Bu Hasa integrated facility project (BIFPD) is being carried out by Adnoc Onshore (previously known as Adco).
At least a dozen leading international contractors were among those initially pre-qualified by Adnoc Onshore and were issued tender documents earlier this year, added sources.
In addition to the five bidders, Spain’s Intecsa Industrial, Italy’s Tecnimont, UK-based TechnipFMC, South Korean players Samsung E&C, SK E&C and Daewoo and Abu Dhabi’s National Petroleum Construction Company (NPCC) were also thought to have been issued tender documents, but are unlikely to have bid, sources claimed.
The Bu Hasa job is being touted as one of the largest development projects being pursued by Adnoc Onshore this year.
The BIFPD development envisages the increase in crude production from the onshore oilfield from 540,000 barrels per day to 570,000 bpd, industry sources said.
The workscope includes fluid gathering and testing facilities, two pipeline networks, two production hubs, conversion of three trains in a central degassing station by adding de-salters, electrical expansion and other related facilities, sources added.
In addition to the incremental oil production from Bu Hasa, the project aims to de-bottleneck water handling at the central degassing station, implement an integrated pad for production gathering, re-inject produced water from the degassing station through existing water injection clusters and construct a new gas lift network to reactivate the existing inactive wells, sources suggested.
The EPC work is expected to take about 40 months to complete after the contract award, expected during the second half of this year.
Adnoc is also carrying out front-end engineering and design work on the BIFPD project, which is likely to be completed before the planned EPC award, one source suggested.
Bu Hasa lies 200 kilometres South of Abu Dhabi and has been in production since 1965.
Adnoc Onshore, which operates most of Abu Dhabi’s onshore oil and gas fields, produces about 1.6 million bpd of oil and 5.6 billion cubic feet of gas per day.
The state-owned onshore giant is majority-owned by Adnoc, which has a 60% stake. The remaining stakes are held by UK supermajor BP, France’s Total, Japan’s Jodco, GS Energy of South Korea, China National Petroleum Corporation and China’s CEFC.