Iran: Shell awaits early production bids for Soroush/
Middle East Economic Digest
June 23, 2000
Offshore engineering and construction firms are preparing to submit
bids by 10 July for the early production package for the Soroush and Nowruz
offshore oil fields. The Royal Dutch/Shell Group, which has the $ 850 million
contract for Soroush/Nowruz, plans another round of tenders by September
for full development of the two fields.
Bidders for the early production package picked up documents from the
National Iranian Oil Company (NIOC) in late May.
The list of bidders includes the Hague office of ABB Lummus Global,
Hyundai Heavy Industries Company of South Korea, the Anglo-Norwegian Stolt
Offshore, Bouygues Offshore and Technip, both of France, National Petroleum
Construction Company (NPCC) of Abu Dhabi and Sembawang of Singapore. Italy's
Saipem and Serimer of France may also be bidding.
Shell is expected to make a decision on the early production package
by August in order to be able to meet its commitment for production of
early oil from Soroush in late 2001. Tenders for the full production package
should be out by September, say bidders, for the start of full production
of 100,000 barrels day (b/d) at Soroush and 90,000 b/d at Nowruz in late
Early production work includes one wellhead platform topside and a wellhead
jacket for Soroush; and one wellhead jacket and one production platform
jacket for Nowruz. About 10 kilometres of 16-inch pipeline is also required.
Bidders are also selecting local firms with shipyard manufacturing facilities
to take on as partners in the scheme. NIOC rules require local content
of at least 30 per cent.
Shell was awarded the Soroush/Nowruz contract in November and invited
prequalification bids for the early production package in late February.
In January, the company awarded the front end engineering and design contract
to ABB Lummus Global, and has since made several small awards (MEED 10:3:00).