The state-backed energy company has issued bid documents for Package 1 — the gas plant — with technical offers expected from a select group of international contractor consortia.
SEATTLE (Oil Monster): ADNOC Gas, a subsidiary of the Abu Dhabi National Oil Company, has launched the tender process for an estimated $8 billion engineering, procurement and construction (EPC) package for its Bab Gas Cap (BGC) development in the emirate of Abu Dhabi.
The BGC development and production concession represents the largest gas cap development project of its kind in the world, Abu Dhabi's media office recently stated.
The Abu Dhabi government's Supreme Council for Financial and Economic Affairs (SCFEA) recently awarded a new concession agreement to ADNOC Gas' parent, Abu Dhabi National Oil Company (ADNOC), for the development of the BGC reservoir, according to Upstream.
While ADNOC, along with its joint venture partners, is responsible for the project's upstream development, ADNOC Gas is advancing multiple EPC packages for the gas processing facilities needed for the BGC development.
ADNOC Gas recently issued tender documents to a select group of contractors for work on BGC Package 1, which involves the gas plant, multiple people familiar with the development told Upstream.
"Contractors are currently evaluating the tender documents for Package 1, and technical offers are likely to be submitted next month," one person said.
The BGC gas project comprises at least four EPC packages. Package 1 — the gas plant — is the largest on offer and could potentially be worth up to $8 billion.
The operator is said to have pre-qualified at least four contracting groups for Package 1, though some additional players have since been invited to participate.
The consortia pre-qualified by ADNOC Gas include:
In addition to the four pre-qualified groups, McDermott International of the U.S., Middle East-based Petrofac, China's Jereh Group, and Wison Engineering have also been invited by the operator to participate in the bid process, one source noted.
One industry source argued that the four pre-qualified groups have an advantage over the newly invited contractors.
"ADNOC Gas wants more players to participate in the bid chase, but the four groups have done a fair bit of work on the tender process and are well-positioned to chase the project," the source said.
In response to a query from Upstream, an ADNOC Gas spokesperson said the company does not "comment on speculation about potential commercial negotiations." Upstream reached out to all key contractors invited for the BGC Package 1 contract; CPECC could not be reached for comment despite multiple attempts.
The BGC development is a gas cap production project in Abu Dhabi, described by the Abu Dhabi media office as the largest gas cap development project of its kind in the world.
Package 1, which covers the gas plant, is potentially worth up to $8 billion, making it the largest of at least four EPC packages in the BGC project.
Four consortia were pre-qualified: Larsen & Toubro/Samsung E&A; Technip Energies/Sinopec/JGC; Tecnimont/CPECC; and Saipem/NMDC Energy/CCC.
McDermott International, Petrofac, Jereh Group, and Wison Engineering were also invited by ADNOC Gas to participate in the bid process.
According to sources familiar with the project, technical offers for Package 1 are likely to be submitted in the near term following evaluation of the tender documents.
Courtesy: www.upstreamonline.com
