ABU DHABI 15 November 2018: Abu Dhabi National Oil Company (Adnoc) announced an Dh5.1 billion (US$1.4 billion) investment to upgrade and expand its Bu Hasa field that will increase crude oil production capacity to 650,000 barrels per day (bpd).
This is an im-portant 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 Re-unidas 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 sign-ing, which took place on Adnoc’s stand at the Abu Dhabi International Petroleum Exhibition and Conference (Adipec), was witnessed by Dr. Sultan Al Jaber, UAE Minister of State and Adnoc Group CEO, Arthur Wallace Crossley, CEO Upstream, Tecnicas Reunidas and Abdulmunim Al Kindy, Ad-noc’s Downstream 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 million barrels per day (mmbpd) in 2020, and 5 mmbpd in 2030.
New Facilities
The asset upgrade and expansion include 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.
Tecnicas Reunidas SA is a Spanish based engineering company founded in the 1960’s. It started working in the UAE in 2006 and has historically been very active in using local suppliers and vendors. However, since Adnoc launched its In-Country Value Programme it has been delivering an aggressive ICV improvement plan, focused on hiring more UAE nationals, partnering with local en-tities, and working with local suppliers to purchase goods from the UAE.
Earlier this year a consor-tium of Tecnicas Reunidas SA and UAE based Target Engineering Construction was awarded an EPC Contract for the second phase of Adnoc LNG’s Integrated Gas Development Expansion Project.
The Bu Hasa field, located 200 kilometres south of Abu Dhabi city, is one of Adnoc’s oldest oil fields, with production starting in 1965. It is operated by Adnoc Onshore.