Oman’s Galfar Engineering & Construction has submitted the lowest price for the first of 2 deals to upgrade oily water treatment and disposal facilities at Abu Dhabi’s Zirku Island.

According to sources close to the scheme, Galfar submitted a price of USD 32.1 million beating rival proposals from the local Adyard, Italy’s Saipem and Ireland’s Kentz in November 15 bid round.

The client, Zakum Development Company a subsidiary of state energy firm Abu Dhabi National Oil Company uses Zirku as its main base of operations. The island is located 140 kilometers northwest of Abu Dhabi.

Technical proposals were submitted on August 23. The engineering, procurement and construction contract for the first part of the deal was tendered by Zadco on July 14, covering the construction of a new 12 inch pipeline to replace the existing transit route.

The company plans to tender the second part of the project in mid 2011 as part of wider plans to upgrade the facilities and increase crude oil handling capacity at the Upper Zakum oil field to 750,000 barrels per day from the current 550,000 barrels per day.

(Sourced from MEED)