Abu Dhabi National Oil Company invests Dh1.8 billion to upgrade Bab onshore field
Over 75% of investment will flow into UAE economy under in-country value programme
Abu Dhabi: Abu Dhabi National Oil Company (Adnoc) announced on Wednesday, a significant Dh1.8 billion investment to upgrade its Bab onshore field, one of its largest onshore producing assets, located 160 kilometres southwest of Abu Dhabi city.
Adnoc Onshore, a subsidiary of Adnoc and the operator of the field, awarded the EPC (engineering, procurement and construction) contract to Archirodon Construction Overseas SA Co (Archirodon) 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 has a term of 39 months.
“This award follows an extremely competitive and rigorous tender process that ensures that over 75 per cent of the award value will flow into the UAE’s economy, stimulating local economic growth and nurturing new business opportunities for the private sector,” said Abdulmunim Saif Al Kindy, executive director of Adnoc’s Upstream Directorate.
“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,” he added.
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.
With more than Dh1.35 billion 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.
“The Bab field already plays an important role in supporting Adnoc’s production capacity mandates and this upgrade complements Adnoc’s upstream growth plans,” said Yaser Saeed Al Mazrouei, chief executive officer of Adnoc Onshore.
“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.,” he added.