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Wed 13 Nov 2019 02:12 PM

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ADNOC invests $489m in UAE onshore oil field upgrade

Abu Dhabi National Oil Company announces significant investment to upgrade its giant Bab onshore field

ADNOC invests $489m in UAE onshore oil field upgrade

ADNOC said the investment will re-energise its first field producing Murban grade crude to sustain long-term crude oil production capacity.

Abu Dhabi National Oil Company (ADNOC) announced on Wedneday a significant investment to upgrade its giant Bab onshore field, one of its largest onshore producing assets located 160km southwest of Abu Dhabi.

ADNOC said the investment will re-energise its first field producing Murban grade crude to sustain long-term crude oil production capacity.

The investment is valued at AED1.8 billion ($489 million), through an engineering, procurement and construction (EPC) contract, it said in a statement.

ADNOC Onshore, a subsidiary of ADNOC and the operator of the field, awarded the EPC contract to Archirodon Construction Overseas to build the facilities and infrastructure required to sustain long-term crude oil production capacity of the field at 485,000 barrels per day (bpd).

The contract, which has a term of 39 months, was announced at the Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC).

Abdulmunim Saif Al Kindy, executive director of ADNOC’s Upstream Directorate, said: “The Bab field is integral to our strategy to create a more profitable upstream business and 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.”

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.

Yaser Saeed Al Mazrouei, CEO of ADNOC Onshore, said: “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.”

With more than AED1.35 billion ($367 million) expected to flow back into the UAE’s economy over the lifetime of the project, the award will give significant stimulus to the country’s products and services and create additional skilled employment opportunities for UAE nationals, he added.

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.

ADNOC is targeting an oil production capacity of 4 million barrels of oil per day (mmbpd) by the end of 2020 and 5 mmbpd by 2030.

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