The Abu Dhabi National Oil Company (ADNOC) is investing up to $318 million (AED1.16 billion) to connect newly drilled smart wells to the main production facilities at Bu Hasa, which will sustain production capacity of 650,000 barrels per day (bpd) at ADNOC’s largest onshore asset.
The engineering, procurement and construction (EPC) contract was awarded in two packages by ADNOC Onshore. Package 1 is valued at up to $158.6 million (AED 582 million) and was awarded to China Petroleum Pipeline Engineering Co. Ltd, while Package 2, with a value of up to $159.1 million (AED 583.9 million) has been awarded to Robt Stone (ME) LLC. The duration of the contracts is three years, with the option of a two-year extension.
The EPC award follows a competitive tender process and will see over 50% of the combined value of both awards flow back into the United Arab Emirates (UAE) economy under ADNOC’s In-Country Value (ICV) programme.
Yaser Saeed Almazrouei, ADNOC upstream executive director, said: “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. 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.”
The EPC contract will see up to 260 conventional and non-conventional smart wells installed, which enable remote operations. The installed tie-ins will be different from traditional tie-ins previously used by ADNOC Onshore, as the contractors will procure all required equipment on an upfront basis allowing for faster construction and well hand-over.
In 2018, ADNOC awarded a contract for the Bu Hasa Integrated Field Development Project (BUIFDP) to increase the production capacity of the asset to 650,000 bpd and sustain long-term production as part of its strategy to expand its crude oil production capacity to 5 million bpd by 2030. This new award builds on the progress made to date and will enable ADNOC Onshore to unlock greater value from the asset.
The Bu Hasa asset is located 200 kilometers south of Abu Dhabi city. It is one of ADNOC’s oldest oil fields, which has been producing since 1965.
