Weekly

See all articles

Dubai Petroleum floats tender for Rashid field

Emirati company has issued documents for contract that includes new 12-slot wellhead platform, with bids due in soon

Dubai Petroleum has issued tender documents for a key offshore engineering, procurement, construction and installation contract involving the further development of its Rashid oilfield, 70 kilometres off Dubai’s coast.

Sources close to the development said Dubai Petroleum recently issued the documents to leading offshore contractors and yards in the region, and bids are likely to be submitted soon.

“We have just received the tender, and technical bids are expected to be submitted later this month,” a source from one of the interested players told Upstream.

Commercial bids are expected to be submitted on 19 November, another source claimed.

The workscope is said to include design, fabrication and installation of one new 12-slot wellhead platform, named Rashid-D.

In addition, the contract includes design, procurement and installation of several kilometres of offshore pipelines and power cables, sources said.

One source said the offshore contract could be valued at between $100 million and $120 million, but another thought the figure could be higher.

Several leading players are believed to have received tenders for the Rashid-D project, although names of all those outfits could not yet be confirmed by Upstream.

Some of the companies that received bid documents from Dubai Petroleum are said to include US giant McDermott, United Arab Emirates-based National Petroleum Construction Company and Eversendai Offshore, India’s Larsen & Toubro, UK-listed Lamprell, French giant TechnipFMC and Dubai-based Drydocks World.

One source suggested that other offshore players are also expected to be in the fray.

A second source claimed that Drydocks World could have an edge over others and is likely to tie-up with a leading international EPIC player.

TechnipFMC is said to have been associated with a previous development phase of the offshore oilfield comprising the Rashid-C platform, while the fabrication of the 2000-tonne offshore jacket and wellhead platform was carried out by Drydocks World, sources added.

Dubai is a modest oil producer in the United Arab Emirates, where Abu Dhabi produces more than 95% of the country's overall oil production.

Dubai’s oil output peaked in 1991 at more than 400,000 bpd and has been declining since that time.

Oil output from Dubai’s mature fields is now believed to be running at less than 60,000 barrels per day and is expected to drop further. However, Dubai does not provide any official oil production data.

In 2010, Dubai’s ruler Sheikh Mohammed bin Rashid Al Maktoum announced an offshore oil find associated with the Rashid oilfield, but did not elaborate on the reserves.

The find was made to the east of Rashid — one of the four fields that produce most of the emirate’s crude.

The emirate's existing oil production comes primarily from this offshore quartet- Fateh and Southwest Fateh, Rashid and Falah.

In addition, the Margham onshore field is said to produce natural gas and condensate.