Adnoc awards $519m contract to CNPC subsidiary to carry out seismic surveys

About 50 per cent of the total award value is expected to flow back into the UAE’s economy

Abu Dhabi National Oil Company on Thursday said it awarded a contract worth up to $519 million to further expand the scope of the world’s largest combined three-dimensional onshore and offshore seismic survey . ReutersShow less

Abu Dhabi National Oil Company (Adnoc) awarded a $519 million contract to expand the scope of the world’s largest combined three-dimensional (3D) onshore and offshore seismic survey to discover new oil and gas resources in the emirate.

The contract was awarded to BGP, a subsidiary of China National Petroleum Company (CNPC), represented in the UAE by Al Masaood Oil Industry Supplies & Services Company, according to a statement from Adnoc on Thursday.

“This award builds on the solid progress we are making in executing the world’s largest combined 3D seismic survey, which is an important part of our strategy to accelerate the exploration and development of Abu Dhabi’s hydrocarbon resources,” Yaser Saeed Al Mazrouei, Adnoc upstream executive director, said.

“It further demonstrates Adnoc’s commitment to realising the full potential of our conventional and unconventional oil and gas resources to ensure the UAE remains a long-term and reliable energy provider to the world.”

Abu Dhabi’s Supreme Petroleum Council (SPC) earlier this week revealed the discovery of recoverable unconventional oil resources estimated at 22 billion stock tank barrels (STB). It announced an increase in conventional oil reserves of 2 billion STB, boosting the UAE’s conventional reserves to 107 billion STB.

SPC also announced a rise in hydrocarbon reserves of 7 billion STB of oil and 58 trillion standard cubic feet of conventional gas, as well as the discovery of unconventional recoverable gas resources totalling 160tn scf in November last year.

In July 2018, Adnoc awarded the first set of contracts for the seismic survey and has so far recorded almost 60 per cent progress in executing the initial scope which includes onshore and offshore areas. The entire survey, including the added coastal scope, is on track to be completed in 2024.

The new contract increases the scope of ongoing surveys to capture coastal areas, islands, and shallow water, capturing 3D images of subsurface structures to pinpoint potential hydrocarbon reserves.

The data will then be used by successful exploration partners in a first block bid round and will be available to purchase for successful bidders who make it through to the second bid round, which will begin to be awarded this year following the SPC’s recent approval.

About 50 per cent of the total award value for the expanded scope is expected to flow back into the UAE’s economy to support local businesses in line with Adnoc's 2030 strategy, according to Adnoc.

The UAE has continued to attract foreign investment during the pandemic, with Adnoc agreeing a $20.7bn deal in June for a group of global asset managers to acquire leasing rights to parts of its gas pipeline network. Wam

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