Leading engineering, procurement and construction contractors have submitted revised commercial bids to Abu Dhabi National Oil Company (Adnoc) for a much-delayed tender involving its Dalma offshore sour gas development project — a key project in boosting the United Arab Emirates' gas output.

Optimised commercial offers for two key EPC packages meant for the Dalma project were recently submitted, with the operator expected to award the prized contracts within months.

A second person also claimed that Adnoc is expected to award the coveted sour gas contracts during first half of 2021, despite the delays in the ongoing tender process.

The Dalma sour gas development is a part of the wider Ghasha sour gas concession in Abu Dhabi, which also includes multiple international partners such as Italy’s Eni and Russia’s Lukoil.

Up to a half-dozen leading international contractors are said to be in the frame for the two EPC packages.

The first package comprises the onshore surface facilities meant for the Dalma development, while the second one includes the offshore infrastructure.

Those thought to have bid for the first package include a grouping of Abu Dhabi’s Target Engineering with Spain’s Tecnicas Reunidas, UK-headquartered Petrofac, China Petroleum Engineering & Construction Corporation and South Korea’s Hyundai E&C.

For the second package, Abu Dhabi’s National Petroleum Construction Company is likely to compete against Italy’s Saipem.

An Adnoc spokesperson told Upstream that the company "does not comment on market speculation", but added that the operator continues to responsibly progress its strategic projects, including Ghasha and Dalma.

Adnoc last year awarded Petrofac the key onshore package for Dalma involving the surface facilities, while the second package comprising the offshore facilities was awarded to a pairing of Petrofac and Sapura Energy.

However, the Emirati state-owned giant later cancelled the Dalma contracts following the coronavirus outbreak, as it aimed to further optimise costs for the sour gas project.

Project watchers said that the capital expenditure on the sour gas development is expected to be lower than earlier estimated, considering changes being done to its workscope.

The Dalma development is expected to add more than 300 million cubic feet per day of gas peak production to the UAE's output.

Field Development

Adnoc gets moving on much-delayed sour gas development as bids roll in