ADNOC, The Abu Dhabi National Oil Company, will invest $1.4 billion to update and develop the Bu Hasa field.
That move will increase crude oil production potential up to 650,000 bpd. As ADNOC strives to increase crude oil production by 2030, that decision is coherent with its smart growth strategy.
The Bu Hasa field is located 200 km south of Abu Dhabi, the capital of U.A.E. The production there has started in 1965 which makes that one of ADNOC’s oldest oil fields.
Tecnicas Reunidas SA has gained an engineering, procurement and construction (EPC) contract by ADNOC Onshore, the company’s subsidiary. The works will approximately last 39 months. Thus, once done, the upgrade will increase oil production capacity from 550,000 bpd to 650,000 bpd.
The EPC contract succeeds the Abu Dhabi’s Supreme Petroleum Council’s recent endorsement to boost ADNOCS crude oil production capacity to 4 MMbpd by 2020. However, the goal is 5 MMbpd by 2030.
The asset upgrade and expansion covers facilities, new pipeline networks and production hubs. It also includes the conversion of three trains in a central degassing station and other related facilities. In addition to that, the project will streamline water handling, implement a second gas lift recovery phase and improve the overall production efficiency. It will further reduce some inactive wells.
Abdulmunim Al Kindy said, “Tecnicas Reunidas SA has been selected to deliver and execute this important project after an extremely competitive tendering process, ensuring they will contribute in excess of 60% of the total contract as in-country value, which will amount to over $800 million of value add to the UAE economy. We are partnering with an organisation that can deploy effective engineering and value-add technologies in support of our company-wide drive for greater efficiency and reduced cost while maintaining the highest safety standards.”