UAE-based Abu Dhabi National Oil Company (ADNOC) has invested AED1.8bn ($489m) to upgrade its Bab onshore field.
Bab field is located approximately 160km south-west of Abu Dhabi.
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The investment looks to support ADNOC’S first field producing Murban grade crude for long-term crude oil production capacity.
ADNOC’S subsidiary and Bab field operator ADNOC Onshore has awarded the engineering, procurement and construction (EPC) contract to construction firm Archirodon.
The contract was awarded after a competitive tender process. According to the company, more than 75% of the contract value or $367m will flow into the UAE’s economy.
Under the contract, Archirodon will be responsible for the construction of the facilities and necessary infrastructure to support the 485,000bpd production capacity.
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By GlobalDataADNOC Upstream Directorate executive director Abdulmunim Saif Al Kindy said: “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.”
The company is targeting to raise production capacity on the Bab field to 450,000bpd by 2020 from its current 420,000bpd capacity.
ADNOC Onshore CEO Yaser Saeed Al Mazrouei said: “The Bab field already plays an important role in supporting ADNOC’S production capacity mandates and this upgrade complements ADNOC’S upstream growth plans.
“The project will enable us to minimise lifecycle 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.”
