Adnoc invests AED1.8bn to upgrade giant onshore field

ABU DHABI / WAM

The Abu Dhabi National Oil Company (Adnoc), on Wednesday announced a significant investment to upgrade its giant Bab onshore field, one of its largest onshore producing assets, located 160 kilometres southwest of Abu Dhabi city.
The investment valued at AED1.8 billion will re-energise Adnoc’s first field producing Murban grade crude to sustain long-term crude oil production capacity and reinforces Adnoc’s commitment to maximising value from Abu Dhabi’s vast hydrocarbon resources as it delivers its 2030 smart growth strategy.
The investment will be executed through an Engineering, Procurement and Construction (EPC), contract that will achieve In-Country value in excess of 75 percent, underscoring Adnoc’s drive to enabling sustainable value for the UAE and supporting the growth and diversification of the nation’s economy.
Adnoc Onshore – a subsidiary of Adnoc and the operator of the field – awarded the EPC contract to Archirodon Construction Overseas SA Co 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, “This award follows an extremely competitive and rigorous tender process that ensures that over 75 percent 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.”
He added, “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 maximise value from Abu Dhabi’s vast hydrocarbon resources.”
With more than AED1.35 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 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. This new award builds on the substantial progress made to date and will enable Adnoc Onshore to unlock and fully utilize the long-term potential of the field.