Page 15 - MEOG Week 12

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Hail & Ghasha offshore sour gas development. Two people familiar with the project told
Upstream that the state-owned giant has indicated to the bidders that commercial offers for at least four engineering, procurement and construction packages are now likely to be submitted by the end of next month.
“We were earlier hoping to submit commercial bids this month, but now we are hearing that it is likely to be pushed forward until the end of April,” one person said.
However, a third person said that the huge project is likely to be further impacted by the global Covid-19 pandemic and plummeting crude prices, leading to more delays.
“We believe that the commercial submission could get further delayed until the third quarter, but there’s no confirmation yet from the operator. A lot would depend on how soon the global situation normalises,” he said.
The sour gas gas development is being touted as the emirate’s largest oil and gas project this year, and is likely to add up to 1 billion cubic feet per day of gas from 2024 as part of Adnoc’s master plan and 2030 long- term strategy.
Up for grabs are four EPC packages, which are understood to be together worth close to $10 billion. The technical bids for the four packages were submitted in November last year, but the commercial submission has been delayed on a few occasions.
Package 1 is valued at upwards of $3 billion and includes offshore drilling centres, subsea pipelines and compression platforms.
The workscope for the first package also involves the laying of more than 400 kilometres of subsea pipelines and 212 kilometres of subsea cables.
Those vying for the first package include a grouping of Italy’s Saipem and Abu Dhabi’s National Petroleum Construction Company (NPCC), another consortium of McDermott International of the US with Spain’s Tecnicas Reunidas and UK’s Petrofac.
The workscope for Package 2, which is likely to be worth about $2 billion, comprises facilities to be installed on the project’s artificial islands. It involves the Ghasha offshore processing plant and central living quarters facilities.
Those chasing the second package include a grouping of NPCC, Saipem and China’s China Petroleum Engineering & Construction Corporation (CPECC), another consortium of Petrofac and South Korean giant Samsung, Hyundai E&C, and a grouping of Greek player Archirodon with China’s Sinopec.
Package 3 includes onshore utilities and tie-ins required for the sour gas development.
The bidders for the third package are said to include a consortium of Petrofac with Samsung, a grouping of Archirodon and Sinopec and Italy’s Tecnimont.
Package 4 comprises a major onshore gas plant at Manayif aimed at processing sour gas
from the two fields.
The Manayif package is expected to be
worth more than $4 billion and is believed to be the largest on offer from Adnoc for the giant sour gas development.
The bidders for the fourth package include Tecnicas Reunidas with McDermott, another consortium of Tecnimont with India’s Larsen & Toubro (L&T), Italy’s Saipem with CPECC and Petrofac on its own.
Package 5, which involves work on Hail & Ghasha’s artificial islands, was awarded by Adnoc last year to United Arab Emirates’ National Marine Dredging Company.
That $1.4 billion contract includes dredging, land reclamation and marine construction for multiple artificial islands in the first phase of the project’s development.
The Hail & Ghasha fields lie off Abu Dhabi in water depths of less than 15 metres.
Their development is of strategic importance for Abu Dhabi as it seeks to meet increasing gas demand in the emirate. uPstream
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