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Contractors submit bids for major Lower Zakum oil project

19 August 2024

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The offshore arm of Abu Dhabi National Oil Company (Adnoc Offshore) has received technical bids for engineering, procurement and construction (EPC) works on a major project to boost oil production at the Lower Zakum offshore hydrocarbons concession in Abu Dhabi.

The Lower Zakum hydrocarbons zone is 65 kilometres northwest of Abu Dhabi in the Gulf’s waters. Adnoc Offshore holds the majority 60% stake in the Lower Zakum asset. Foreign partners include an Indian consortium of companies led by ONGC Videsh (10%), Japan’s Inpex Corporation (10%), China National Petroleum Corporation (10%), Italy’s Eni (5%) and France’s TotalEnergies (5%).

Adnoc Offshore’s larger, longer-term objective is to raise the asset’s output capacity to 520,000 barrels a day (b/d) by 2027 and maintain that level until 2034. This strategic goal will be accomplished through the Lower Zakum Long-Term Development Plan (LTDP-1) project.

Contractors submitted technical bids for the multibillion-dollar Lower Zakum LTDP-1 project by 14 August, according to sources.

MEED previously reported that Adnoc Offshore had issued the main EPC tender for the Lower Zakum LTDP-1 project in March, according to sources.

Contractors invited to bid were initially set a deadline of the end of July to submit technical bids for the project. Commercial bids are due in September.

Adnoc Offshore intends to award EPC contracts for the Lower Zakum LTDP-1 project by the end of the year, sources previously told MEED.

Lower Zakum LTDP-1 project

Adnoc Offshore has divided the scope of work on the Lower Zakum LTDP-1 project into three EPC packages:

Topside facilities on G Island – Civil works on process facilities and associated buildings on the artificial greenfield G Island.

Process facilities include well pads, inlet and export reception, production separation, export pumps, gas compression, dehydration and lift, produced water treatment and disposal, vapour recovery units, water injection units, riser tower, flare towers, accommodation, drilling of high-pressure flare knock out drum, power distribution facility, substations and local equipment rooms.

Offshore WHTs and pipelines – Seven WHTs will be installed: six in the east area, and one in the AGI area. Five of the WHTs are to be 16-slot, while the other two are to be nine-slot.

Das Island Terminal, ZCSC and ZWSC – The five existing oil processing trains at the Lower Zakum offshore development are to be decommissioned in 2028, with the new configuration of the main processing plant at Das Island to be:

  • Two existing trains with a processing/stabilisation capacity of 110,000 b/d each
  • Three new trains with a processing/stabilisation capacity of 150,000 b/d

The scope of work also covers the installation of other structures such as:

  • Three high-pressure separator trains
  • High-pressure scrubber
  • Three low-pressure separator trains
  • Low-pressure scrubber
  • Three atmospheric separator trains
  • Four crude charge pumps
  • Three crude charge heaters
  • Three cold strippers integrated with a degassing vessel
  • Six stripped crude product pumps
  • Common ejector with a spare for three cold strippers
  • Closed drain drum with transfer pump
  • Blow case vessel

Adnoc Offshore expects the Lower Zakum LTDP-1 project to be commissioned by the end of 2027.

Technip Energies has performed the front-end engineering and design (feed) work on the Lower Zakum LTDP-1 project. Adnoc Offshore awarded the French firm the contract in November 2022, and set a feed completion deadline of January 2024, MEED previously reported.

Adnoc Offshore began the main contract prequalification process for the EPC works on the Lower Zakum LTDP-1 project in March 2023. Contractors were initially asked to submit expression of interest documents by 10 April that year, with the deadline extended to 27 April.

Adnoc Offshore started an early engagement process for the main EPC tendering process on the Lower Zakum LTDP-1 project in the fourth quarter of last year.

ALSO READ: Adnoc awards Lower Zakum offshore project

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Indrajit Sen

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