Up to six major international contractors are set to battle it out for a key offshore contract from Abu Dhabi National Oil Company (Adnoc) for work on the long-term development phase of its giant Umm Shaif oilfield.

Several people familiar with the development told Upstream that Adnoc recently issued tender documents to shortlisted bidders for the first phase of its Umm Shaif long-term development project (LTDP-1), despite the challenges being posed by the Covid-19 pandemic.

“We have just received the bid documents and technical offers are likely to be submitted in June,” one source said.

A second person familiar with the tender process said that a pre-bid meeting is expected within days, with all interested players likely to participate.

Those believed to have received bid documents from Adnoc for LTDP-1 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.

Upstream recently reported that Adnoc was set to fire the starting gun on the LTDP-1 project, despite the coronavirus outbreak.

The 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.

The Umm Shaif LTDP-1 project aims to sustain oil production from the 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.

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

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 (US-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.

While Adnoc has highlighted its intent to press ahead with strategic projects, it recently cancelled a contract involving its Dalma sour gas development, raising concerns about its aim of pushing on with billions of dollars-worth of investments.

The state-owned giant recently handed over a termination notice to a grouping of Petrofac and Malaysia’s Sapura for $1.65 billion of EPC contracts awarded earlier this year.

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.

One project watcher cautioned that, while Umm Shaif LTDP-1 is among the key projects that looks to be progressing, it could still face delays or a review if the market situation worsens.

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.

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Bidders set for offshore deal at huge Adnoc oilfield