Adnoc awards $318m worth of contracts to sustain output capacity at largest onshore asset

The works will sustain production capacity at the Bu Hasa field at 650,000 bpd

The Belbazem block, which lies 120 kilometres northwest of Abu Dhabi city, is also expected to produce 27 million cubic feet per day of associated gas by 2023.Courtesy: Adnoc

Abu Dhabi National Oil Company will invest $318 million (Dh1.16 billion) to connect newly drilled wells to production facilities at the Bu Hasa field to sustain capacity at the company's largest onshore oil field.

The engineering, procurement and construction packages are awarded by the state oil company's subsidiary, Adnoc Onshore. The first package is valued at $158.6m and was awarded to China Petroleum Pipeline Engineering. The second package worth $159.1m was awarded to Abu Dhabi-based Robt Stone. The contracts are valid for three years with an option to extend for two years.

"This EPC award demonstrates how Adnoc is leveraging advanced technologies, such as smart wells with state-of-the-art remote capabilities, to drive higher performance from our assets and resources, and to generate additional value," said Adnoc upstream executive director Yaser Saeed Almazrouei.

Bu Hasa is one of Adnoc ’s oldest oil fields located 200 kilometers south of Abu Dhabi city. It has been producing oil since 1965.

In 2018, Adnoc awarded a contract for the Bu Hasa Integrated Field Development Project to increase the production capacity of the asset to 650,000 barrels per day and sustain long-term production as part of its strategy to expand its crude oil production capacity to 5 million bpd by 2030.

“The award underpins our strategic objectives to expand production capacity and create a more profitable upstream business with over half of the contract value flowing back into the UAE’s economy, supporting local businesses and stimulating economic growth,” Mr Almazrouei, added.

As part of the contract, 260 conventional and non-conventional smart wells will be installed to enable remote operations, according to Adnoc.

Over 50 per cent of the combined value of both awards is expected to flow back into UAE’s economy under Adnoc’s In-Country Value programme, which will create new job opportunities for UAE nationals, Adnoc said.