Larsen & Toubro secures EPC contract for field development in Abu Dhabi

Indian engineering firm Larsen & Toubro’s wholly owned subsidiary L&T Hydrocarbon Engineering (LTHE) has secured an Rs22bn ($341.79m) engineering, procurement and construction (EPC) contract from Al Dhafra Petroleum Operations Company for field development in Abu Dhabi, UAE.

Under the contracts, LTHE will provide engineering, procurement, construction and commissioning of flow lines, gathering facilities and pipelines to transfer crude oil and gas from Haliba fields to processing facility at Asab.

The scope of the contract also includes installation of 132kV and 33kV overhead electrical transmission lines to supply power.

Al Dhafra Petroleum is owned by Adnoc as part of a joint venture (JV) with Korea National Oil (KNOC) and GS Energy, which is represented by Korean Abu Dhabi Oil Consortium (KADOC).

The contract is part of Adnoc’s decision to make capital investment to set up facilities and enable oil production from Haliba field.

Adnoc Upstream director Abdulmunim Al Kindy said: “L&T Hydrocarbon Engineering has been selected to deliver this project after a competitive tendering process, ensuring that as shareholders, Adnoc and KADOC, maximise value from the investment in Haliba, and we partner with an organisation that can deploy advanced engineering and technology to support our group-wide drive for greater efficiencies, increased productivity and reduced costs.”

The company is planning to commence production from the field by mid-next year with an initial capacity of 20,000 barrels of oil per day.

Capacity is expected to be gradually increased to 40,000 barrels per day by 2020.

In addition to 32 wells, the first phase of the EPC work will involve construction of a 65km pipeline.

The pipeline will be used to transport crude oil from Haliba field wells to Adnoc Onshore’s Asab Central Degassing Station for processing.

Thereafter, ADNOC Onshore’s existing main oil lines will carry stabilised crude oil to the marine export terminals.