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April 1, 2020

Hail and Ghasha commercial bid date extended

By MEED   

Abu Dhabi National Oil Company (Adnoc) has extended to 22 April the commercial bid submission date for the four main packages of its estimated $20bn Hail and Ghasha offshore sour gas field development megaproject, according to sources.

The previous commercial bid submission date set by Adnoc was 29 March.

Technical bids for engineering, procurement and construction (EPC) packages 2, 3 and 4 were submitted by 11 November, while technical entries for package 1 were submitted by 25 November.

“Close to the previous [commercial] bid submission date, several contractors asked for an extension by up to 10 weeks,” one source said.

“The 22 April [commercial bid] deadline will most likely be extended,” another source said.

Even prior to the Covid-19 pandemic impacting industry activity, Adnoc is understood to have extended the Hail and Ghasha project schedule, considering the massive size, scope and strategic value of the scheme.

It has previously been reported that Adnoc was set to call in commercial bids in January.

The four EPC packages, their estimated contract values, and contracting entities bidding for each, according to sources, are:

  • Package 1 (offshore) – $3bn
    • Saipem (Italy)/NPCC (UAE)
    • McDermott (USA)/Tecnicas Reunidas (Spain)
    • Archirodon (Greece)/Sinopec Engineering (China)
    • Petrofac (UK)
  • Package 2 (offshore) – $2bn
    • Petrofac (UK)/Samsung Engineering (South Korea)
    • Saipem (Italy)/CPECC (China)/NPCC (UAE)
    • Hyundai Engineering and Construction (South Korea)
    • Archirodon (Greece)/Sinopec Engineering (China)
  • Package 3 (onshore) – $1bn and $2bn
    • Samsung Engineering (South Korea)/Petrofac (UK)
    • Archirodon (Greece)/Sinopec Engineering (China)/Consolidated Contractors Company (Greece/Lebanon)
    • Dodsal (India)
    • Tecnimont (Italy)
  • Package 4 (onshore) – $4bn and $6bn
    • Petrofac (UK)/Samsung Engineering (South Korea)
    • Tecnicas Reunidas (Spain)/McDermott (USA)
    • Tecnimont/Larsen & Toubro Hydrocarbon Engineering (India)
    • Saipem (Italy)/CPECC (China)

An Adnoc spokesperson said the estimated contract values reported for the four EPC packages on the Ghasha development are “purely speculative”.

With the Hail and Ghasha sour gas scheme, Adnoc Sour Gas intends to produce another 1 billion cubic feet a day of sour gas by 2024.

US-headquartered Bechtel is doing the front-end engineering and design (feed) works on the project, while US-based KBR is the overall project management consultant.

This article is published by MEED, the world’s leading source of business intelligence about the Middle East. MEED provides exclusive news, data and analysis on the Middle East every day. For access to MEED’s Middle East business intelligence, subscribe here.

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