Abu Dhabi National Oil Company (ADNOC) announced on Wednesday a AED5.1 billion ($1.4 billion) investment to upgrade and expand its Bu Hasa field, which will increase crude oil production capacity to 650,000 barrels per day (bpd).
ADNOC said this is an important step towards delivery of its 2030 smart growth strategy that seeks to increase its crude oil production capacity and reduce cost to create a more profitable upstream business.
An engineering, procurement and construction (EPC) contract has been awarded to Tecnicas Reunidas by ADNOC’s subsidiary, ADNOC Onshore, which operates the field.
The works are expected to take 39 months to complete and the upgrade will increase oil production capacity from 550,000 bpd to 650,000 bpd by the end of 2020.
The Bu Hasa field, located 200km south of Abu Dhabi city, is one of ADNOC’s oldest oil fields, with production starting in 1965.
The award of the contract follows the recent endorsement, by Abu Dhabi’s Supreme Petroleum Council’s, of ADNOC’s plans to increase its crude oil production capacity to 4 million barrels per day (mmbpd) by 2020, and 5 mmbpd by 2030.
Dr Sultan Al Jaber, UAE Minister of State and ADNOC Group CEO, said: “This significant investment in the Bu Hasa field will enable production capacity to be increased and generate additional value.
"We are on track to meet our production capacity target of 3.5 million barrels of oil per day by the end of this year – to 4 million barrels per day by the end of 2020 – and this contract is yet another sign of our clear commitment to making smart investments to maximize the value of Abu Dhabi’s oil resources.”
The asset upgrade and expansion include facilities, new pipeline networks and production hubs, as well as the conversion of three trains in a central degassing station and other related facilities.
Tecnicas Reunidas is a Spanish-based engineering company which started working in the UAE in 2006. Earlier this year a consortium of Tecnicas Reunidas and UAE-based Target Engineering Construction was awarded an EPC contract for the second phase of ADNOC LNG’s Integrated Gas Development Expansion Project.For all the latest energy and oil news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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