Contract reportedly awarded for Abu Dhabi's $1bn Belbazem oil project
McDermott is said to have "pipped" Larsen & Toubro, TechnipFMC, and Doris Engineering to win work on UAE-China firm Al Yasat's project
US contracting giant McDermott is said to have beaten engineering, procurement, and construction (EPC) contracting companies from India, France, and the UK to win Al Yasat Petroleum Company’s contract for its Belbazem offshore project in Abu Dhabi, worth almost $1bn (AED3.67bn).
According to a report by Upstream, McDermott is “believed to be in pole position” to win the pre-front-end engineering design (FEED) and concept re-selection contract from Al Yasat. The American construction company “pipped several key competitors, including India’s Larsen & Toubro, UK-based TechnipFMC, and France’s Doris Engineering” for the contract, the report adds.
“[McDermott is] believed to have started some initial work on the project but no official announcement has been made yet,” a source told the media outlet.
Mott MacDonald (UK), Wood Group (UK), Engineers India, National Petroleum Construction Co (UAE), Worley Parsons (Australia), Ramboll (Denmark), and KBR (US) were also interested in the project, according to the report, which adds, however, that they are “unlikely to have participated in the bidding process”.
Al Yasat had initially floated a tender to implement “broader” FEED study work for Belbazem. It reportedly later “decided to pursue an integrated approach, and reworked the scope for the original tender that now mostly involves pre-FEED work and reselection of concept”.
“Al Yasat is thought to have initially carried out some conceptual and initial engineering work on the Belbazem development, but the scope was later significantly altered, requiring re-selection of concept and optimisation studies,” Upstream’s report continues.
“Cost estimation of the revised concept has also been included. The scope also includes verification of the initial pre-FEED work based on updated sub-surface data, added sources. UK-based Mott MacDonald is thought to have earlier landed a project management consultancy contract for work on the Belbazem project,” the report adds.
In a separate report, Upstream added that Al Yasat has issued tender documents to “select contractors” for a design competition related to the project. “Half a dozen” shortlisted EPC companies have received the design tender that will result in “a prized EPC contract that is likely to be awarded next year”.
According to the second Upstream report, one source said: “We have received the Belbazem tender documents, and technical offers for the FEED part are expected to be submitted by first week of October.”
Meanwhile, another source told the publication that the deadline could be extended by a couple of weeks, with Al Yasat to hopefully select “up to three contractors for the design competition by the end of this year”. The FEED study is expected to take six months, following which EPC contractors will be invited to quote their prices, the report adds.
According to construction intelligence website, ProTenders, the Belbazem offshore field is located up to 50km from Zirku Island and 120km northwest of UAE capital, Abu Dhabi. Its project listing page for Belbazem explains that Al Yasat is a 60:40 subsidiary of Abu Dhabi National Oil Company and China National Petroleum Corporation, and was established in April 2014.
“The Belbazem block consists of three oil-bearing structures: Belbazem, Umm Al Salsal, and Umm Al Dholou,” ProTenders’ project listing continues.
“The project aims to produce about 45,000 barrels per day of oil and up to 27 million ft3 per day of gas from the Belbazem block, while maintaining reservoir pressure support with water injection. The scope of work is likely to involve several wellhead platforms, subsea pipelines, subsea cables and other associated offshore facilities.
“In addition, electrical submersible pumps are to be installed across all production wells. Production is expected to be exported to the existing Sateh Al Razboot processing plant through a network of subsea pipelines. A network of pipelines to carry the water for injection to Belbazem's offshore platforms will also form part of the project.”