Adnoc evaluates Upper Zakum contractors

MEED    17 January 2020 (Last Updated January 17th, 2020 15:41)

More than 24 companies are seeking to qualify for engineering, procurement and construction contracts on the $8bn field expansion project.

Adnoc evaluates Upper Zakum contractors

More than 24 companies are seeking to qualify for engineering, procurement and construction contracts on the $8bn field expansion project.

Abu Dhabi National Oil Company (Adnoc) is evaluating prequalification proposals from about 24 contractors for engineering, procurement and construction (EPC) work on its Upper Zakum offshore field expansion project (UZ1000).

Firms submitted proposals by the deadline of 25 November, according to a source.

The estimated $8bn project aims to increase the field’s oil production potential to 1 million barrels a day (b/d) by 2024.

Adnoc is understood to have divided the EPC works into two main packages.

Upper Zakum packages

The first package of Upper Zakum work covers the development of surface facilities.

The second package of work covers the installation of subsea pipelines. This includes:

  • Laying of a main oil transfer pipeline of 28 inches covering a distance of 47 kilometres from the Upper Zakum field to the main oil processing facility at Zirku island
  • Laying of two 132kv subsea cables, each 19km long
  • Laying of two 132kv subsea cables, each 12km long
  • Installation of 16-inch oil line stretching 8.4km
  • Installation of 12-inch oil line 7.3km in length

Adnoc may decide to break up the work into additional packages and could also revise the scope after or close to the completion of front-end engineering and design (feed) works.

Feed work is being carried out by Spanish contractor Tecnicas Reunidas.

Upper Zakum timeline

Adnoc has said it expects to issue the invitation to bid (ITB) for the EPC packages in the second quarter of 2020.

It plans to award the EPC contracts in the third quarter of next year. Completion of EPC works is planned for the fourth quarter of 2022, with commissioning of the UZ1000 project scheduled for the third quarter the following year.

The Upper Zakum oil field, located 84km offshore Abu Dhabi, is the second-largest offshore oil field and fourth-largest oil field in the world.

Adnoc says it has already committed approximately $22bn, along with its operating partners, towards raising the Upper Zakum hydrocarbon field’s oil output to 750,000 b/d (UZ750) from about 640,000 b/d at present.

Project management

MEED recently reported that Adnoc had received bids from project management consultants (PMC) in its pool of firms for the project management of the EPC phase of the UZ1000 megaproject.

Several contractors are performing EPC works on components of the UZ750 project. The various UZ750 packages are in the advanced stages of EPC works execution.

The UZ750 project comprises four new artificial islands, to accommodate drilling rigs, processing facilities and infrastructure required to handle the Upper Zakum field’s production capacity growth to 750,000 b/d.

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