At least four leading international contracting groups are gearing up to submit commercial offers within weeks for a substantial subsea power transmission project from Abu Dhabi National Oil Company (Adnoc) aimed at driving down carbon emissions at the state-owned giant's offshore facilities.

Multiple people familiar with the development told Upstream that the tender process for Adnoc’s so-called Lightning project is set to advance to its next crucial phase, with commercial bids likely to be submitted on 28 October.

“We are hoping that commercial offers would be submitted next month and Adnoc will be able to finalise its preferred contracting group by end of this year,” one person said.

The joint project by Adnoc and compatriot Abu Dhabi Power Corporation (ADPower) aims to “develop and operate the region’s first high-voltage, direct current (HVDC) subsea transmission system" that will connect Adnoc’s offshore production facilities to ADPower’s onshore electricity grid.

Reducing carbon footprint

The offshore power transmission project is expected to reduce the carbon footprint of Adnoc's offshore facilities by up to 30% and would optimise power supply cost for the facilities.

The preferred contractor will be responsible for developing the project on a build, own, operate and transfer (BOOT) basis, a model that is now increasingly being followed by state-owned companies in the region.

Upstream reported in July that non-binding offers for the project were submitted by up to five leading groups.

Those believed to have earlier submitted non binding offers and are said to be preparing commercial offers include:

A grouping of China’s Offshore Oil Engineering Company (COOEC) with compatriot China State Grid;
A consortium of UK’s Petrofac with Belgian player Elia;
A consortium of Indian engineering giant Larsen & Toubro and Japan’s Kansai Electric; and
A consortium of South Korea’s Samsung and Kepco Electric with EDF of France.

Another grouping of Italy’s Saipem and Terna was also believed to have submitted an offer earlier this year, but Saipem is said to have withdrawn from the tender process.

"Saipem is no longer in the chase now, but Terna could still be involved with some other player," a second person said.

One project watcher said that commercial bids for the lightning project were due this month, but were recently pushed back by the operator until 28 October.

"A lot of clarifications would be done before the prices go in. Also, in the absence of a front-end and engineering design study, contractors needed more time for submission," one person said.

The project is likely to be operational by 2025 and will be funded through a special-purpose vehicle jointly owned by Adnoc and ADPower each with 30%, and the selected developers and investors with 40%, Adnoc had said.

Field Development

Quartet ready to strike for Adnoc's huge Lightning project