Bid & Tender

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Project Summary
Project Name: Adnoc's Upper Zakum Field Expansion Project (UZ1000)
Facility Type: Oil Field Development
Client: Abu Dhabi National Oil Company (Adnoc)
Budget (US $): 8,000,000,000
Project Initiation: Not Given
Project Completion:: Sep 13, 2027
Status: PMC Awarded,EPC Awarded,
Location: Zakum Field
Project Current Status

Adnoc Offshore has awarded the EPC contract worth about $500mn to Target Engineering Construction Company of Abu Dhabi for the Upper Zakum offshore field expansion megaproject (UZ1000). The EPC-2 contract scope involves the second phase of the project to increase oil production potential of the Upper Zakum offshore field to 1.2 million barrels per day (bpd). It covers the EPC of the structures on Asseifiya Island. In April, Adnoc Offshore had awarded the main EPC contract worth $825mn for the UZ 1.2 MMBD EPC-1 project to Target Engineering Construction Company. Tecnicas Reunidas of Spain won the contract for the feed works and Wood Group of UK was appointed as the project management consultant for the EPC phase I project. (November 2024)

Project History
  • Adnoc has issued a tender for the PMC of the EPC phase of its Upper Zakum offshore field expansion megaproject (UZ1000). The tender has been issued to top firms with which Adnoc recently signed a framework agreement for the provision of PMC services for its group-wide projects on a call-off basis. There are eight firms that are part of Adnoc’s PMC framework arrangement, with the first six comprising tier 1, to which the PMC tender [for UZ100] has been issued: TechnipFMC of France, Fluor of US, KBR of US, Wood Group of UK, SNC-Lavalin of Canada, Worley of Australia, Penspen of UK, and Mott Macdonald of UK (December 2019)
  • Adnoc has received bids for the PMC of the EPC phase of its Upper Zakum offshore field expansion megaproject (UZ1000). (January 2020)
  • Adnoc is evaluating pre-qualification proposals for engineering, procurement and construction contracts from about 24 contractors. (January 2020)
  • Adnoc is expected to issue tender in April for the EPC works on the Upper Zakum field's next expansion phase. (January 2020)
  • The client has awarded a contract for FEED works to Tecnicas Reunidas of Spain. (April 2020)
  • The 5-year contract for artificial islands in the Upper Zakum offshore field has been awarded to Adnoc Drilling, Schlumberger, and Halliburton. The six artificial islands include Asseifiya, Ettouk, Al Ghallan, and Umm Al Anbar in the Upper Zakum field. Under the contracts, the firms will provide coiled tubing services with thru-tubing downhole tools and stimulation services including equipment and chemicals/fluid systems. It also covers surface well testing services, wireline, and production logging services and tools, saturation monitoring, and well integrity. (July 2021)
  • ExxonMobil is holding a meeting with Adnoc for the project development. (October 2022)
  • Adnoc Offshore has invited bids by 20 April, 2023 for the engineering, procurement, and construction (EPC) works on the Upper Zakum offshore field expansion megaproject (UZ1000). The contract scope of work includes the development of surface facilities for UZ1000 expansion project on four main drilling islands. (April 2023)
  • For the development of surface facilities for UZ1000 expansion project on four main drilling islands: Al-Ghallan (Central Island), Umm al-Anbar (West Island), Ettouk (North Island) and Asseifiya (South Island), companies that are participating to bid include Tecnicas Reunidas, Petrofac and Saipem.(April 2023)
  • Adnoc Offshore has extended the technical bids submission deadline to 5 June, 2023 for EPC works on the Upper Zakum offshore field expansion megaproject (UZ1000). The contract scope of work includes the development of surface facilities for UZ1000 expansion project on four main drilling islands. (June 2023)
  • The technical bids have been submitted for the project. (June 2023)
  • Adnoc Offshore has received bids for the EPC works on the Upper Zakum offshore field expansion megaproject (UZ1000). The bidders, among others, include: NPCC, Petrofac, Tecnicas Reunidas. The commercial bids are yet to be submitted. (July 2023)
  • The commercial bid submission is yet to be done for the development of Surface Facilities. (September 2023)
  • Adnoc Offshore has invited commercial bids by 23 October, 2023 for the EPC works on the Upper Zakum offshore field expansion megaproject (UZ1000). The technical bids for the contract have been received from: • NPCC, • Petrofac, • Tecnicas Reunidas. (October 2023)
  • The commercial bid submission due is on 13 November, 2023 for the Development of Surface Facilities. (November 2023)
  • Adnoc Offshore has received commercial bids for the EPC works on the Upper Zakum offshore field expansion megaproject (UZ1000). The bidders are: • Petrofac, • Target Engineering Construction Company, • Tecnicas Reunidas. (November 2023)
  • The main contract bids for the Development of Surface Facilities are under evaluation. (January 2024)
  • For the development of surface facilities at the Upper Zakum offshore field expansion megaproject (UZ1000), Target Engineering Construction Company has been emerged as the front-runner to carry out the EPC contract. The contract is expected to be awarded this month. (January 2024)
  • Target Engineering Construction Company is the front-runner for the main contract and it is yet to be awarded. (April 2024)
  • Adnoc Offshore has awarded a contract with an estimated value of $733 million to Adnoc Drilling Company for three island drilling rigs in support of the growing operations at the offshore Zakum field. The rigs will operate on existing and newly constructed innovative artificial islands at the offshore Zakum field for drilling and completion of wells. The rigs, which will be constructed by Honghua Group (HH), will incorporate industry leading technology and automation. The rigs will be designed and built as part of a partnership between Adnoc Drilling and HH. The total capital expenditure expected for the purchase of the new island rigs is approximately $210 million. Delivery of the rigs and commencement of operations is expected during 2026. Adnoc has undertaken this megaproject, estimated to cost $8bn including drilling-related expenditure, to increase the premier offshore field’s oil production potential to 1 million barrels per day. The project is expected to be completed by Q3, 2027. (July 2024)

Project Contract Awards - Feed
Contractor Prequalified Contractor Bids Submitted Contractor Awarded | Contract Value
Project Contract Awards - PMC
Contractor Prequalified Contractor Bids Submitted Contractor Awarded | Contract Value
  • Fluor
  • KBR of US
  • Technip
  • SNC Lavalin
  • Worley Parsons
  • Wood Group of UK
  • Fluor
  • KBR of US
  • SNC Lavalin
  • Technip
  • Wood Group of UK
  • Worley Parsons
  • Wood Group of UK
Project Contract Awards - EPC
Contractor Prequalified Contractor Bids Submitted Contractor Awarded | Contract Value
  • Target Engineering
  • Tecnicas Reunidas
  • NPCC
  • Petrofac
  • Archirodon of Greece
  • Petrofac
  • Target Engineering
  • Tecnicas Reunidas
  • Target Engineering(UZ 1.2 MMBD EPC 1 - $825mn, UZ 1.2 MMBD EPC 2 - $500mn)
Related Projects
Zadco’s Upper Zakum’s Early Production Facilities – Overview
Project Schedule

December 2019: Invitation to Bid for PMC

January 2020: Bids Submission PMC

April 2023: Invitation to Bid for EPC of Package 1

June 2023: Technical EPC Bids Submission

November 2023: Commercial EPC Bids Submission for Surface Facilities 

April 2024: Contract Awarded for EPC Phase I

November 2024: Contract Awarded for EPC Phase II

2027: Expected Commissioning & start-up 

Project Scope

The project scope involves the development of the megaproject to increase the premier offshore field’s oil production potential to 1.2 million barrels per day. It is called Upper Zakum offshore field expansion megaproject (UZ1000).

 

The strategic objective is to first raise the asset’s oil output from 640,000 b/d to 750,000 b/d through the UZ 750 project, and then eventually to 1.2 million b/d through the two phases of the ongoing UZ 1.2 MMBD project.

 

The front-end engineering and design (feed) works on the UZ1000 project has been carried out by Tecnicas Reunidas of Spain.

 

The EPC scope involves the following:

Package-1: Development of Surface Facilities on four main drilling islands: Al-Ghallan (Central Island), Umm al-Anbar (West Island), Ettouk (North Island) and Asseifiya (South Island).

Package-2: Subsea Pipelines. Laying of a main oil transfer pipeline of 28 inches covering a distance of 47 kilometers from the Upper Zakum field to the main oil processing facility at Zirku island.

 

Raising output

 

The Upper Zakum oil field, located 84 kilometres offshore Abu Dhabi, is the second-largest offshore oil field and the fourth-largest oil field in the world.

 

Adnoc has already committed approximately $22bn, along with its operating partners, towards raising the Upper Zakum hydrocarbon field’s oil output to 750,000 b/d (UZ750) from about 640,000 b/d at present.

 

Several contractors are currently performing EPC works on components of the UZ750 project. The various UZ750 packages are in the advanced stages of EPC works execution.

 

The UZ750 project comprises four new artificial islands to accommodate drilling rigs, processing facilities and infrastructure required to handle the Upper Zakum field’s production capacity growth to 750,000 b/d.

 

The Upper Zakum development is also enabling synergies with the Lower Zakum concession through shared multi-well pad drilling and streamlined rig utilisation, which are enhancing efficiencies and optimising costs.

 

The UZ1000 megaproject is critical to the group achieving its oil production goal of 5 million b/d by 2030.

Project Structure:
The project is owned, operated and managed by the Offshore Arm of Abu Dhabi National Oil Company - Adnoc Offshore.
AbdullahNasser Al Suweidi
Address: Abu Dhabi National Oil Company Building, Al Kornish Street, P.O. Box 898, Abu Dhabi, United Arab Emirates
Designation: Vice Chief Executive Officer and Director
Department: Abu Dhabi National Oil Company
Phone: +971 2602-0000
Fax: +971 2602-3389
Email: info@adnoc.ae