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December 18, 2019

Adnoc issues project management tender for Upper Zakum field expansion

Adnoc has undertaken the megaproject to increase the premier offshore field’s oil production potential to 1 million barrels a day (b/d) by 2024.

By GlobalData Energy

Adnoc has issued a tender for the project management consultancy (PMC) of the engineering, procurement and construction (EPC) phase of its estimated $8bn Upper Zakum offshore field expansion megaproject (UZ1000), according to a source.

Abu Dhabi National Oil Company (Adnoc) has undertaken the megaproject, which is estimated to cost $8bn including drilling-related expenditure, to increase the premier offshore field’s oil production potential to 1 million barrels a day (b/d) by 2024.

The PMC tender for EPC works was issued in the last week of November, the source said.

The tender has been issued to top firms with which Adnoc recently signed a framework agreement for the provision of PMC services for its group-wide projects on a call-off basis. “The PMC tender [for UZ100] has been likely issued to the tier 1 project consultants,” the source said.

There are eight firms that are part of Adnoc’s PMC framework arrangement, with the first six comprising tier 1:

  • TechnipFMC (France)
  • Fluor (US)
  • KBR (US)
  • Wood Group (UK)
  • SNC-Lavalin (Canada)
  • Worley (Australia)
  • Penspen (UK)
  • Mott Macdonald (UK)

Bidders have until 23 December to submit proposals for the UZ1000 PMC for the EPC contract.

MEED earlier reported that the front-end engineering and design (feed) works on the UZ1000 project are being carried out by Spanish contractor Tecnicas Reunidas.

Raising output

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

Adnoc said 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.

Several contractors are currently 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.

The Upper Zakum development is also enabling synergies with the Lower Zakum concession through shared multi-well pad drilling and streamlined rig utilisation, which are enhancing efficiencies and optimising costs.

This article is sourced from Offshore Technology sister publication www.meed.com, a leading source of high-value business intelligence and economic analysis about the Middle East and North Africa. To access more MEED content register for the 30-day Free Guest User Programme. 

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