ADNOC awards EPC contract to Archirodon Construction Overseas

ADNOC had already announced an investment of $489mn to upgrade Bab field, one of its largest onshore producing assets

The Abu Dhabi National Oil Company (ADNOC) said that its subsidiary, ADNOC Onshore, has awarded a major engineering, procurement and construction (EPC) contract to Archirodon Construction Overseas.

The contract is for the development of the ‘Bab’ onshore field and has a term of 39 months.

As per the terms of the deal, Archirodon will start building the facilities and infrastructure required to sustain long-term crude oil production capacity of the field at 485,000 barrels per day (bpd).

The scope of the Bab field upgrade project includes the development of oil producing wells, water injection wells, artificial lift wells, well-bays, let down stations, water injection clusters and other infrastructure required to sustain the production capacity of the field, a statement said.

The investment will re-energise ADNOC’s first field producing Murban grade crude to sustain long-term crude oil production capacity and is said to reinforce the firm’s commitment to maximising value from Abu Dhabi’s hydrocarbon resources, as it delivers its 2030 smart growth strategy, ADNOC said in its statement.

“This award follows an extremely competitive and rigorous tender process that ensures that over 75% of the award value will flow into the UAE’s economy, stimulating local economic growth and nurturing new business opportunities for the private sector, in line with the leadership’s wise directives,” said Abdulmunim Saif Al Kindy, executive director of ADNOC’s Upstream Directorate.

The expansion of the Bab field comes two years after ADNOC Onshore awarded a contract to increase the capacity of the field from 420,000 to 450,000 bpd by 2020, ENOC said.

Al Kindy added that the contract award builds on the substantial progress made to date and will enable ADNOC Onshore to unlock and fully utilise the long-term potential of the field.

“This award will ensure that we sustain long-term oil production capacity from a maturing field, underlining our commitment to making smart investments and engaging value-add partners to unlock and maximize value from Abu Dhabi’s vast hydrocarbon resources,” he explained.

ADNOC Onshore CEO Yaser Saeed Al Mazrouei noted, “The Bab field already plays an important role in supporting ADNOC’s production capacity mandates and this upgrade complements ADNOC’s upstream growth plans. The project will enable us to minimise life-cycle costs on the field and will deploy cutting-edge technologies to allow us to progressively and efficiently unlock the full potential of the field’s existing assets and wells, while tapping into new reservoirs to sustain long-term production output.”


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