Region makes unconventional strides

MEED    26 February 2021 (Last Updated February 26th, 2021 17:18)

Abu Dhabi National Oil Company (Adnoc) has received commercial bids from contractors for its estimated $15bn Hail and Ghasha offshore sour gas field development project, according to industry sources.

Region makes unconventional strides
Credit: skeeze / Pixabay.

EPC contractors have submitted commercial bids for the four main EPC packages of the estimated $15bn megaproject

Abu Dhabi National Oil Company (Adnoc) has received commercial bids from contractors for its estimated $15bn Hail and Ghasha offshore sour gas field development project, according to industry sources.

MEED recently reported that Adnoc had granted contractors a week’s extension to submit commercial bids for the engineering, procurement and construction (EPC) works on the Hail and Ghasha megaproject, deferring the deadline from 17 February to 24 February.

According to the original Hail and Ghasha project plan, the four main EPC packages, their estimated contract values and the contracting entities bidding for each, are:

  • Package 1 (offshore) – $3bn
  • Saipem (Italy) / National Petroleum Construction Company (NPCC, UAE)
  • McDermott (US) / Tecnicas Reunidas (Spain)
  • Archirodon (Greece) / Sinopec Engineering (China)
  • Petrofac (UK)
  • Package 2 (offshore) – $2bn
  • Petrofac (UK) / Samsung Engineering (South Korea)
  • Saipem (Italy) / China Petroleum Engineering & Construction Corporation (CPECC, China) / NPCC (UAE)
  • Hyundai Engineering & 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 (US)
  • Tecnimont/Larsen & Toubro Hydrocarbon Engineering (India)
  • Saipem (Italy) / CPECC (China)

An Adnoc spokesperson has previously said that the estimated contract values reported for the Hail and Ghasha project EPC packages are “purely speculative”.

Project revision

Since September last year, Adnoc had been considering downsizing the overall scope of work on the Hail and Ghasha development to reduce the total capital spending required to develop the asset, and eventually issued a revised scope of work in the form of a new tender bulletin.

Following the issue of the new tender bulletin, contractors submitted revised technical bids by 5 December, in line with the recalibrated scope of work on the EPC packages.

MEED also reported in September that Adnoc hosted a series of meetings with contractors over several days, starting 15 September, to discuss the potential modified scope of work and other aspects related to the project.

The objective of the meetings was for Adnoc to understand the technical, financial and manpower capabilities of contractors in light of the adverse business impact of the coronavirus pandemic.

Discussions about the scope of work were also to be a “central purpose of the meetings”, it was previously reported.

It is understood that Adnoc and its equity partners in the Ghasha offshore sour gas concession, where the Hail and Ghasha fields are located, have yet to make the final investment decision on the project development.

Adnoc began the EPC tendering phase for the development in early 2019. In the previous bidding round, technical bids for EPC packages two, three and four were submitted by 11 November and technical entries for package one were submitted by 25 November.

As part of the original project schedule, Adnoc was set to receive commercial bids in January this year.

A fifth package, relating to early civil works and building of support structures on the project, has been awarded to local contractor Al-Jaber Energy Services.

US-headquartered Bechtel is carrying out the front-end engineering and design works on the project and US-based KBR is the overall project management consultant.

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

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