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L&T leading contest for Haliba field contract

Indian player's bid almost $100 million lower than others for onshore project in UAE

 INDIAN engineering giant Larsen & Toubro (L&T) has emerged as the front-runner to secure the main onshore contract for Al Dhafra Petroleum’s Haliba oilfield development project in the United Arab Emirates.

Industry sources told Upstream that L&T was the lowest bidder in the Haliba tender. State-owned giant Abu Dhabi National Oil Company (Adnoc) holds a 60% stake in Al Dhafra Petroleum, while the remaining 40% is held by South Korean joint-venture players Korea National Oil Corporation and GS Energy.

A trio of leading engineering, procurement and construction contractors had submitted commercial bids to the UAE-based player in March.

Competing with L&T were Italy’s Tecnimont and a consortium of China Petroleum Engineering & Construction Corporation (CPECC) with France's TechnipFMC. L&T is believed to have offered a competitive price of $358 million for the project, which industry sources had earlier estimated would be significantly more expensive.

The CPECC-TechnipFMC grouping is thought to have emerged as a distant second to the lowest bidder, having offered close to $450 million, while Tecnimont quoted about $550 million for the job.

One source suggested that Al Dhafa is expected to award the Haliba contract to L&T within a week or two, though another was more cautious and predicted the process would take a little longer.

Once an award is placed, Haliba is likely to be the first major contract to be finalised by Al Dhafra this year. 

Abu Dhabi had either delayed or put on hold several crucial oil and gas projects following the industry downturn.

Eight players were initially thought to be in the frame to participate in the Haliba tender floated last year, but some chose not to bid because of the tight work schedule, industry sources said.

Abu Dhabi’s National Petroleum Construction Company (NPCC) and Swedish electrical giant ABB’s EPC division were also thought to have submitted technical offers to Al Dhafra last year, but did not submit commercial bids at a later stage, sources said.

In addition, Spain’s Intecsa Industrial, UAE-based Dodsal E&C and UK-listed Petrofac were also expected to bid for the Haliba project, but later decided not to progress, added sources.

The project’s workscope is said to include various common facilities within the field, central gathering facilities and an export pipeline from the central gathering facilities to Abu Dhabi Company for Onshore Petroleum Operations’ (Adco's) Asab facilities. 

The full field development plan envisages 41 oil production wells.

In addition, 39 water injection wells, three water supply wells and one water disposal well will be drilled and used for the water injection system to maintain reservoir pressure and production.

Al Dhafra Petroleum, which was set up in 2013, operates onshore and offshore concession areas in Abu Dhabi.

The Haliba field is located in Area 1, which is one of three concessions operated by Al Dhafra.

Area 1, which is onshore, includes the Haliba, Bu Qalla and Riqueah key oilfields, which were discovered in the 1990s and are spread across more than 4300 square kilometres.

Haliba is located about 150 kilometres south of Abu Dhabi. The oilfield is targeted to achieve sustainable production of 30,000 barrels per day.