Business | Oil & Gas
Adnoc subsidiary in productivity deal with Kuwait firm
Esnaad, a subsidiary of the Abu Dhabi National Oil Company (Adnoc), said on Friday it has signed a business collaboration agreement with Kuwait's Napesco International Petroleum Company under which Napesco will provide oil well stimulation and other services to another Adnoc unit - Abu Dhabi Company for Onshore Oil Operations (Adco).
- By Himendra Mohan Kumar, Staff Reporter
- Published: 23:20 November 7, 2008
Abu Dhabi: Esnaad, a subsidiary of the Abu Dhabi National Oil Company (Adnoc), said on Friday it has signed a business collaboration agreement with Kuwait's Napesco International Petroleum Company under which Napesco will provide oil well stimulation and other services to another Adnoc unit - Abu Dhabi Company for Onshore Oil Operations (Adco).
"The alliance with Nap-esco is for two years and it can be extended by another year. Esnaad/Napesco expect to generate Dh20 million yearly income through services to Adco," Esnaad's General Manager Darwish Al Qubaisi said at a news conference here.
Esnaad's Well Services Department Manager Said S. Al Khatib said Napesco is initially targeting 50 wells for stimulation in the first year of their alliance.
Five fields
Napesco's Assistant General Manager for Business Development, Mohammad A. Meghani said their work in Abu Dhabi will start within the next three months and equipment worth up to $8 million (Dh29.4 million) will be deployed in the operations, which will be brought in from Kuwait.
"The oil well stimulation will enhance recovery and increase production of the wells by as much as 50 per cent," he claimed.
Adco, he said, has up to 3,000 wells in five major oil producing fields in the emirate of Abu Dhabi.
Abu Dhabi produces about 94 per cent of the UAE's oil output. In the quarter ended in September, the UAE produced on an average 2.66 million barrels of crude oil per day, according to the Paris-based International Energy Agency, which advises 28 member countries on energy policy.
Esnaad was established in 2002 through the merger of two Adnoc subsidiaries - Abu Dhabi Drilling Chemicals and Products Limited and National Marine Services Co.
Esnaad provides full-fledged services and supplies to the oil and gas industry in Abu Dhabi with emphasis on the production and marketing of drilling chemicals, oil well services, handling materials, labour and equipment supply, marine services, storage facilities, lease of warehouses, offices, stores and special installations.
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