Abu Dhabi National Oil Company (Adnoc) has pushed back the tender process until at least next month for an offshore contract that involves work on the long-term development phase of its giant Umm Shaif oilfield.

Project watchers said that technical offers for the first phase of Umm Shaif long-term development project (LTDP-1) were initially expected to be submitted in June, but now their submissions are likely to be delayed at least until mid-August.

“We have been preparing technical offers for Umm Shaif LTDP-1 project, but Adnoc recently communicated to the bidders that the submission will be delayed until 13 August,” one person said.

A second person also confirmed the development, but added that there could be further delays in the tender process, considering the coronavirus outbreak.

“A lot depends on the Covid-19 situation,” he said.

Upstream reported in May that Adnoc initiated the tender process for the offshore project.

The Umm Shaif LTDP-1 project aims to sustain oil production from the offshore field until 2028 and is a key part of the emirate’s strategy to achieve an output capacity of 5 million barrels per day by 2030, up from 4 million bpd forecast for the end of 2020.

Umm Shaif is believed to be currently producing around 275,000 bpd.

“Umm Shaif LTDP-1 will sustain the plateau oil production of the offshore field from the year 2024 to 2028,” one person said.

Five to six leading international contractors are expected to queue up for the LTDP-1 development, one person said.

Those believed to be eyeing the project include Abu Dhabi’s National Petroleum Construction Company (NPCC), UK-listed Petrofac, Indian engineering giant Larsen & Toubro (L&T), Italy’s Saipem, McDermott International of the US and Malaysia’s Sapura Energy.

However, more clarity on the actual list of bidders is likely to emerge by next month, once technical offers are submitted, one person said.

The project’s contractual workscope includes the removal of bottlenecks at the oilfield's facilities and is expected to be completed by the end of 2023.

The successful contractor will also be responsible for the engineering, procurement and construction of five new wellhead towers — 12B, 19B, 142A, 153A and 159A.

Also included in the scope of work are subsea pipelines and cables, a new riser platform (RP-1), modifications to wellhead towers, tie-ins and the provision of associated facilities.

Three wellhead towers (HP-1, HP-2 and HP-3) — each with 12 slots — and associated facilities also form part of the work on offer.

Adnoc is also, within one or two years, expected to start the multi-billion-dollar second phase of the Umm Shaif long-term development project (LTDP-2).

This programme is intended to boost oil production capacity at the field to as much as 360,000 bpd on a long-term basis.

It also envisages adding more than 3 billion cubic feet per day of gas production over the next decade from offshore sour gas fields, gas caps and unconventional resources.

The Covid-19 pandemic has dragged oil and gas prices to historic lows, threatening the viability of development projects across the globe, but state-owned giants in the Middle East are expected to continue investing in key projects, albeit cautiously.

Adnoc chief executive Sultan Ahmed al Jaber said earlier this year that the company would continue to invest resources to deliver on its 2030 growth strategy during this challenging period.

“We will continue to invest responsibly and smartly through the downturn with a firm focus on people, performance, profitability, and efficiency,” Jaber said, without naming the specific projects that the company aims to pursue this year.

While Umm Shaif LTDP-1 is among the key projects that appears to be progressing, considering its strategic importance, many other oil & gas developments in Abu Dhabi are likely to pushed back by several months due to the Covid-19 pandemic, one person said.

An official from a leading international turnkey contractor said that 2020 is turning out to be a “very challenging year” for Abu Dhabi, with key contracts unlikely to be awarded at least until the fourth quarter of this year.

French giant Total, PetroChina and Italy’s Eni hold a combined 40% stake in the new Umm Shaif and Nasr concession, with the majority stake of 60% held by Adnoc.

Field Development

Adnoc delays tender at giant Abu Dhabi offshore oilfield