Adnoc starts oil production at Belbazem offshore block

Output capacity at the site is expected to rise to 45,000 bpd of light crude and 27 mmscfd of associated gas

Adnoc's headquarters in Abu Dhabi. The energy company is using AI to boost efficiency and reduce emissions in its operations. Bloomberg

Adnoc has started oil and gas production from its Belbazem offshore block as the oil company continues to boost output to reach five million barrels per day by 2027 and attain self-sufficiency in gas for the UAE by using lower carbon technology.

The production capacity at the Belbazem block is expected to rise to 45,000 bpd of light crude and 27 million standard cubic feet per day (mmscfd) of associated gas, Adnoc said on Wednesday.

Belbazem block, which consists of the Belbazem, Umm Al Salsal and Umm Al Dholou offshore fields, is operated by Al Yasat Petroleum, a joint venture between Adnoc and China National Petroleum Corporation. It is located 120km north-west of Abu Dhabi city.

The start of crude oil production is “testament to the success of our strategic partnership with CNPC and the robust bilateral energy relationship between the UAE and China”, said Abdulmunim Al Kindy, Adnoc upstream executive director.

“Adnoc continues to maximise value from Abu Dhabi’s resources, while reducing our carbon footprint to ensure a secure, reliable, and responsible supply of energy to customers locally and internationally.”

Adnoc is investing heavily as it aims to achieve net zero by 2045.

The company has allocated $23 billion to invest in a variety of projects up to 2030 as it focuses on its low-carbon growth strategy.

These projects include clean power, carbon capture and storage, further electrification of operations, energy efficiency and new measures to build on its policy of zero routine gas flaring.

Adnoc is developing the Belbazem block by using the facilities of an adjacent offshore field, resulting in cost savings and reduced environmental effects, it said.

Artificial intelligence tools and other digital technologies are also being used at the block, according to the company.

Adnoc is increasingly using AI solutions to boost efficiency and reduce emissions in its operations.

Last year, the energy company generated $500 million as it focused on integrating more than 30 AI tools across its full value chain, from field operations to corporate decision-making, the company said this month.

The applications also abated up to one million tonnes of carbon dioxide emissions between 2022 and 2023, which is equal to removing about 200,000 petrol-powered cars from the roads.

“[AI] is one of the most important economic and social game changers of our era and it can play a crucial role in accelerating a just, orderly and equitable energy transition,” said Dr Sultan Al Jaber, Minister of Industry and Advanced Technology, and managing director and group chief executive of Adnoc.

“At Adnoc, we have integrated artificial intelligence across our operations, from the control room to the boardroom, and it is enabling us to make smarter decisions and better protect our people and the environment."

Adnoc was also the largest spender on low-carbon solutions among national oil companies last year, according to an Energy Intelligence report.