MEED reported that Zakum Development Company has signed up Paris based Technip to complete all of the remaining front end engineering and design studies for its 250,000 barrel per day production expansion at the offshore Upper Zakum oil field.

Technip won the Feed contract for the overall concept study and an initial stage of production on the estimated USD 15 billion project in 2008. The French contractor was awarded all of the remaining engineering design work for the project in the Q2 of 2010 after a series of direct negotiations, senior sources working on the project.

Zadco wants to increase production capacity at the Upper Zakum field to 750,000 barrels per day currently to around 750,000 barrels per day using 4 artificial islands as platforms for drilling, processing and distribution. It will increase production in three phases. The first part of the project covers the construction of early production facilities, to boost production at the field by 100,000 barrels per day and test the viability of the development by 2015.

The Phase II will see Zadco building permanent production facilities which will boost production by a further 150,000 barrels per day by 2016. The Phase III covers smaller projects to sustain production at the planned 750,000 barrels per day.

Technip's original contract only covered the early production facilities at the field. Under the new deal, it will design all of the remaining phases. While the production systems are Greenfield projects, meaning that all of the work will be done on entirely new facilities, Technip is also designing a series of Brownfield schemes upgrades and additions to existing facilities at the Zakum field.

These include new gas injection and lift facilities; extension works and replacement of mechanical equipment. All of these projects are scheduled for completion in the Q1 of 2012.

Zadco is currently pre qualifying international engineering firms for the main engineering, procurement and construction contracts for the early production facilities and associated works. Contractors expect the offshore developer to release formal invitations to bid on the deals before the end of June.

(Sourced from MEED)