The Abu Dhabi National Oil Company (ADNOC) has announced a $1.4 billion investment to upgrade and expand its Bu Hasa field, which will increase crude oil production capacity to 650,000 bpd. This is an important step towards delivery of ADNOC’s 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 SA 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 EPC contract was signed by Yasser Saeed Al Mazrouei, CEO of ADNOC Onshore and Ricardo Sanchez Galindo, upstream business development director, Tecnicas Reunidas. The contract signing, which took place on ADNOC’s stand at the Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC), was witnessed by His Excellency Dr. Sultan Ahmed Al Jaber, UAE minister of state and ADNOC Group CEO; Arthur Wallace Crossley, CEO upstream, Tecnicas Reunidas; and Abdulmunim Al Kindy, ADNOC’s upstream director.
The award of the EPC 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 MMbpd by 2020, and 5 MMbpd by 2030.
H.E. Dr. Sultan Al Jaber 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 MMbopd by the end of this year – to 4 MMbpd 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 and drive significant In-Country Value, in line with our wise leadership’s directives.”
The asset upgrade and expansion includes facilities, new pipeline networks and production hubs, as well as the conversion of three trains in a central degassing station and other related facilities. In addition to the incremental oil production from Bu Hasa, the project will streamline water handling, implement a second gas lift recovery phase and improve the overall production efficiency while reducing the number of inactive wells.
Abdulmunim Al Kindy said, “Tecnicas Reunidas SA has been selected to deliver and execute this important project after an extremely competitive tendering process, ensuring they will contribute in excess of 60% of the total contract as in-country value, which will amount to over $800 million of value add to the UAE economy. We are partnering with an organization that can deploy effective engineering and value-add technologies in support of our company-wide drive for greater efficiency and reduced cost, while maintaining the highest safety standards.”
The Bu Hasa field, located 200 km south of Abu Dhabi city, is one of ADNOC’s oldest oil fields, with production starting in 1965. It is operated by ADNOC Onshore.
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