Bussiness

Project Report

Project Name:   ADCO - Bu Hasa Development   Project & WAG unit G, F & D
Name of Client:   ADCO - Abu Dhabi Co. for    Onshore Oil Operations
Budget:   $318,000,000

Main Contractor: Snamprogetti (U.K.)
Facility Type:   Oil Production
Status:    Construction
PMC:   Parsons International
Location:  Bu Hasa

Project Status
Approved bidders were requested to submit confirmation of interest to bid by 31/08/98.
Stork Engineering were acting as Consultant.
PMC was awarded to Parsons. A separate contract was created for the FEED.
The list of bidders for the FEED on this project were: Technip Geoproduction,  Bechtel,  Snamprogetti and Stone & Webster
The FEED contract was tendered in December 2000. Bid submissions were submitted at end of February 2001. The FEED contract was awarded to Snamprogetti in mid-March 2001. ADCO approved vendor list for this project was submitted to Snamprogetti in August 2001.
ADCO had re-designed the FEED on this project and this was completed January 25, 2001. This will result in a change of FEED for the Gasco - Bu Hasa Revamp. The EPC package for Bu Hasa Facilities Upgrade was originally expected to be issued in August 2001. At the time, ADCO was treating the Bu Hasa Units G and F + D Development as a separate project. Bechtel completed the pre-FEED during November 2001 for Bu Hasa Units G and F + D Development Projects.
Originally the anticipated project award was mid- July 2002. However a decision was taken in July 2002 to combine the Bu Hasa Upgrade with the Bu Hasa units G, F + D. The revised budget for the two projects is $300-350,000,000.
The Supreme Petroleum Council approved the award of the contract to Snamprogetti in early July 2003, and the contract was signed for $318 million on  July 22, 2003.  Dresser Engineering were awarded a $30 million contract for the three high pressure injection compressors, and MHI were awarded a $20 million contract for eight low and medium pressure compressors in August 2003.
Detailed Engineering started in September 2003 and was completed in November 2003.
Procurement commenced in December 2003.
Project team has been mobilised as of July-August 2004 on site. As of December 2004 procurement has been completed and construction started. Construction is ongoing as of mid 2005.

Project Scope 
The project is for the upgrading of the surface production facilities at the onshore Bu Hasa field. The project involves the installation of four three-phase separation units to replace two existing two-phase units. The water separation capacity wil be increased to 480,000 bpd from 100,000 bpd.
The project will be conducted on a fast-track basis and will be done in two phases:
• Phase 1 will involve preparation of basic Engineering Dossiers, and an EPC Tender Package.
• Phase 2 - will be executed on an Engineering, Procurement and Construction (EPC) Lump Sum Contract.
Bu Hasa’s production capacity will rise to 680,000 bpd from the existing 200,000 bpd.
The new project is designed to replace the existing stations with a new Central Degassing Station (CDS). The new facility is being designed to have the capability with a sustainable processing capacity of 610,000 bpd and a maximum capacity of 750,000 bpd (5 x 150,000 bpd). The Bu Hasa gas injection plant is supplied by lean gas from Gasco.  The scope of work includes: Compressor facilities, Water and Gas injection facilities,  Electrical & control systems including power generation systems,  New power station around 30 MW at Bu Hasa, New HP submersible pump (trial),  Piping & Electrical Bulk Materials

Project Structure
ADCO Shareholders: Adnoc 60 per cent,  BP   9.5pc,  Shell 9.5pc,  TotalFinaElf 9.5pc,  Exxon Mobil 9.5pc,  Partex 2pc
The fields are owned and operated by ADCO who is responsible for the execution of the project.

Schedules for this Project 
Mar 2001  Award of FEED
3rd Quarter 2001  Pre-FEED completed     (Units G,F + D)
Nov 6, 2001  FEED enquiries issued     (Units G,F + D)
Nov 2001  Completion of FEED
Apr 6, 2002  FEED contract award     (Units G,F + D)
Jun 2002   Decision to combine     Facilities Upgrade &     Unit G, F + D for EPC     tendering 
Aug 2002  Prequalification for     combined EPC completed
Late Oct 2002  EPC ITB
Nov 2002  Re-FEED to be completed
Feb 4, 2003  First  set of EPC      Techinal bids submitted
Mar 8, 2003  Compressor package commer   cial bids submitted
Mar 18, 2003  2nd set of EPC Technical bids    submitted
Apr 8, 2003  3rd set of EPC Technical bids    submitted
Mid May 2003  EPC Commercial bid     submission
Sep 2003   Start of Detailed Engineering
Nov 2003  Detailed Engineering completed
Dec 2003  Procurement commenced
Dec 2005  Project Completion

The construction period is expected to take 30 months. Detailed Engineering started in September 2003 and was completed in November 2003.  December 2004 Procurement sompleted and construction started.