Adco starts race for key Bu Hasa EPC shortlist

Abu Dhabi player starts pre-qualification process for work at onshore field, with up to 20 contractors expected to compete

Abu Dhabi Company for Onshore Petroleum Operations (Adco) has started the pre-qualification process for a key engineering, procurement and construction contract at its giant Bu Hasa onshore oilfield.

The Bu Hasa integrated facility project (BIFDP) aims to increase crude production from 540,000 barrels per day to 570,000 bpd, industry sources said.

A sizeable group of leading EPC players are expected to line up for the pre-qualification process, with a formal tender expected to be issued to eight to 10 short-listed players by the second half of this year, sources added.

“We are hoping the tendering process will start later this year and the EPC contract will be awarded before the end of 2017,” one source said.

Adco is also carrying out the front end engineering and design study for the BIFPD project, which is likely to be completed by the third quarter of 2017, before the planned EPC award, one source added.

The EPC contract is expected to take about 40 months to complete after the contract award.

One industry source suggested the Bu Hasa job could also attract onshore contractors that showed interest in Adco’s earlier Haliba project. Abu Dhabi’s National Petroleum Construction Company (NPCC), India’s Larsen & Toubro (L&T), China Petroleum Engineering & Construction Corporation (CPECC), Italy’s Tecnimont, United Arab Emirates-based Dodsal and France’s TechnipFMC are among those that might show interest, one said.

Several smaller contractors are also expected to show interest, with one source suggesting that more than 20 players are expected to compete for pre-qualification.

The project workscope includes fluid gathering and testing facilities, two pipeline networks, two production hubs, conversion of three trains in a central degassing station by adding de-salters, electrical expansion and other related facilities, industry sources said.

In addition to the incremental oil production from Bu Hasa, the project aims to de-bottleneck water handling at the central degassing station, implement integrated pad for production gathering, re-inject produced water from the degassing station through existing water injection clusters and construct a new gas lift network to reactivate the existing inactive wells, sources said.

Bu Hasa lies 200 kilometres South of Abu Dhabi and has been producing since 1965.