ADNOC invests $318mn to connect smart wells to Bu Hasa facility
The Bu Hasa asset located 200km south of Abu Dhabi city, is one of ADNOC’s oldest oil fields that have been producing since 1965
$318 million is set to be invested by the Abu Dhabi National Oil Company (ADNOC) to connect its newly drilled smart wells to its main production facilities in Bu Hasa. The move will help ADNOC sustain its production capacity of 650,000 barrels per day (bpd) at its largest onshore asset.
According to a statement, the engineering, procurement and construction (EPC) contract has been awarded in two packages by ADNOC’s subsidiary, ADNOC Onshore. Package 1 is valued at $158.6 million and was awarded to China Petroleum Pipeline Engineering Company, while Package 2 worth $159.1 million has been awarded to Robt Stone (ME). 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 UAE economy under ADNOC’s In-Country Value (ICV) programme. This is said to demonstrate how ADNOC continues to prioritise ICV, as it delivers on its 2030 strategy.
“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.
It will see up to 260 conventional and non-conventional smart wells installed, which enable remote operations. These 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, he explained.
Almazrouei added, “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.”
According to the statement, ADNOC awarded a contract for the Bu Hasa Integrated Field Development Project in 2018, to increase the production capacity of the asset to 650,000 bpd and sustain long-term production. The move was said to be part of the company’s strategy to expand its crude oil production capacity to five million bpd by 2030.
The new contract award builds on the substantial progress made to date and will enable ADNOC Onshore to unlock greater value from the asset, the statement concluded.
