The Upper Zakum offshore field, located 84km offshore in Abu Dhabi, is reputed to be the world’s second-largest offshore oilfield. Credit: T. Schneider/Shutterstock.

Abu Dhabi National Oil Company (ADNOC) Offshore has awarded the main contract for the second phase of an EPC project at the Upper Zakum offshore field to Abu Dhabi-based Target Engineering Construction Company, reported MEED.

The project is aimed at increasing the oil production capacity of the field to 1.2 million barrels per day (mbbl/d).

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The Upper Zakum offshore field, located 84km offshore in Abu Dhabi, is reputed to be the world’s second-largest offshore oilfield. Its development comprises four main artificial islands: Al-Ghallan, Umm Al-Anbar, Ettouk and Asseifiya, also referred to as Central Island, West Island, North Island and South Island, respectively.

The project, called UZ 1.2MMBD EPC-2, is valued at approximately $500m (Dh2.34bn) and includes EPC works on several structures on Assefiya Island.

These structures encompass an integrated gas lift compressor and its associated facilities, a gas dehydration unit, a vapour recovery system and a seawater filtration package, among others.

ADNOC Offshore has undertaken the front-end engineering and design (FEED) work in-house for this project, as indicated in the expression of interest document. The main EPC tender for the project was issued in June.

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Target Engineering received the main EPC contract for the first phase of the project, UZ 1.2MMBD EPC-1, at an estimated value of $825m in April this year.

Spanish contractor Tecnicas Reunidas carried out the FEED works for this phase in 2019, while UK-headquartered Wood Group was appointed as the project management consultant for the EPC phase.

ADNOC, in partnership with Japan Oil Development Company and ExxonMobil, has allocated a capital expenditure budget of approximately $30bn for the Upper Zakum hydrocarbons concession.

ADNOC Group subsidiary ADNOC Drilling set a world record for drilling the longest oil and gas well at the Upper Zakum concession, measuring 50,000ft, in October 2022.

In July this year, ADNOC Drilling secured a $733m contract from ADNOC Offshore to supply three newbuild island rigs to support the expansion of operations at the field.