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Iran: Shell awaits early production bids for Soroush/ Nowruz scheme

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 2003.

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).


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