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Adco fires starting gun in race for Asab EPC

Development contracts could be worth more than $1.3 billion in all

ABU Dhabi's Adco has started the race for an engineering, procurement and construction project involving the second development phase of its Asab onshore field.

Sources told Upstream that Adco recently invited expressions of interest from leading EPC contractors for the facilities required for the second phase full field development (FFD-2).

One source suggested the most recent contract being offered involves the first stage of Asab FFD-2 and that second and third stages are expected to be carried out by the operator later.

The source added that the first development stage of FFD-2 is likely to be valued between $200 million and $300 million, whereas the second and third stages could be together worth upwards of $1 billion.

The work on the first stage of the Asab FFD-2 project is expected to start by the fourth quarter of 2018 and is a core part of Abu Dhabi National Oil Company’s (Adnoc’s) strategy to push oil production from its onshore fields.

The project will see new wells brought into production to maintain the field’s plateau potential until 2029.

The Asab field is a part of Adco’s core South East asset, which contributes to almost one third of Abu Dhabi’s onshore oil production.

The workscope of the new project includes expansion of remote degassing stations (RDS) 1 to 3 and modifications at RDS 1 to 6, to include multiphase flow metres (MPFMs), multi port separator manifolds (MSMs) and gas lift manifolds.

The contractor will also be responsible for the delivery of four new MPFMs, 20 new MSMs and six gas manifolds, sources added.

In addition, a 16-kilometre trunk line and some other associated civil and structural works are also included in the scope.

Leading international EPC contractors including UK-listed Petrofac, French major TechnipFMC, Italy’s Saipem and Tecnimont, Abu Dhabi’s National Petroleum Construction Company, Spanish player Tecnicas Reunidas and Intecsa Industrial, Japan’s JGC and Chiyoda, Korean players GS E&C, SK E&C, Samsung, Hyundai Heavy Industries and Hyundai E&C, India’s Larsen & Toubro, UAE-based Dodsal have shown interest in similar EPC projects in the past and are expected to queue up for this one too, a source said.

However, it could not be confirmed by Upstream whether each of those players received EoIs from Adco.

In January 2009, Petrofac was award a $2.3 billion contract from Adco for a previous development phase at the Asab oilfield. The surface facilities at the central degassing station (CDS) during the initial phase were designed to handle a sustainable production rate of 600,000 barrels of oil per day, sources said.

The Asab onshore field is located about 185 kilometre south of Abu Dhabi.

The field was discovered in 1964 and originally started production back in 1973.

Industry sources suggested that Asab is presently producing about 450,000 bpd of oil, though a formal figure was not available.

Adco’s South East Asset which includes the Asab oilfield is spread over 7500 square kilometres and produces around 33% of the onshore player’s total hydrocarbon production.

In addition to Asab, the other crucial fields in Adco’s south east asset include Sahil, Shah, Qusahwira and Mender.

Adco is also carrying out a separate tender process for the second development phase of the Qusahwira oilfield, with that project likely to be valued at more than $500 million.