Adnoc is advancing a significant engineering, procurement and construction management (EPCM) contract for its Umm Shaif and Lower Zakum offshore oilfields, known as the Asset Replacement Plan (ARP). At least four contractors—Kent, Wood, Worley, and Engineers India (EIL)—are key contenders competing for the deal. Technical offers have been submitted, though commercial bid submission details remain unclear, and the contract is anticipated to be awarded next year.

Strategic Context and Investment Plans

This procurement activity aligns with Adnoc's broader strategy, which includes plans to invest up to $150 billion over the next five years to develop oil and gas assets. A central goal is expanding Abu Dhabi's oil production capacity to 5 million barrels per day by 2027 from the current 4.85 million bpd. The maintenance and further development of the Lower Zakum, Upper Zakum, and Umm Shaif fields are identified as key expansion programs.

Contract Significance and Model

The ARP EPCM contract is described as crucial for maintaining the production profile of the strategic Umm Shaif and Lower Zakum assets. While Adnoc is reportedly moving back towards a conventional engineering, procurement and construction (EPC) model for other projects, this specific EPCM contract is very likely to proceed.

Scope of Work for Asset Replacement

The workscope involves the replacement of multiple critical offshore facilities:

• For the Lower Zakum field, replacements are planned at key offshore super complexes (ZWSC and ZCSC) and include Fire & Gas (F&G) systems, halon systems, and flare tips. F&G systems monitor environmental conditions to detect early signs of fire or gas leakage.
• For the Umm Shaif field, planned replacements at its super complex include halon systems, F&G systems, the wellhead control panel, and other related facilities.