Adipec 2019: Adnoc awards Bab field EPC contract, invests $490m
Archirodon Construction Overseas to carry out upgradation of the facility to up production capacity to 485,000bpd by 2020
Abu Dhabi National Oil Company (Adnoc) has announced an investment of $489m (AED1.8bn) to upgrade its Bab onshore field, which is considered as the state-owned oil giant’s largest onshore producing assets.
According UAE’s state-held news agency, Wam, the investment looks to support Adnoc’s first field producing Murban grade crude for long-term crude oil production capacity.
Adnoc Onshore, which is a subsidiary of Adnoc and the operator of the Bab field — located 160km Southeast of Abu Dhabi — has awarded an engineering, procurement, and construction (EPC) contract to Archirodon Construction Overseas to build the facilities and infrastructure of the field that upon completion will have a capacity to produce 485,000 barrels per day (bpd), up from 420,000bpd by 2020. The million-dollar investment will support the EPC contract.
The contract award was announced on the sidelines of the Abu Dhabi International Petroleum Exhibition and Conference (Adipec) and will be carried out under a 39 month-long period.
Scope of work for the Bab field’s upgradation includes the development of oil producing wells, water injection wells, artificial lift wells, well bays, let down stations, water injection clusters, in addition to other infrastructure required to sustain the production capacity of the field.
Commenting on the contract award, executive director of Adnoc’s upstream directorate, Abdulmunim Saif Al Kindy, said: "This award follows an extremely competitive and rigorous tender process that ensures that over 75% of the award value will flow into the UAE’s economy, stimulating local economic growth and nurturing new business opportunities for the private sector, in line with the leadership’s wise directives.”
Meanwhile, chief executive officer of Adnoc Onshore, Yaser Saeed Al Mazrouei, 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."