The Abu Dhabi National Oil Company (ADNOC) is investing 1.8 billion dirhams ($490 million) to upgrade Bab, one of its largest onshore producing assets.
The investment in Bab onshore field, located 160 kilometers southwest of Abu Dhabi, will be through an Engineering, Procurement and Construction (EPC) contract, that will achieve In-Country Value (ICV) in excess of 75 percent, ADNOC said in a statement.
ADNOC Onshore, a subsidiary of ADNOC and the operator of the field, awarded the EPC contract to Archirodon Construction Overseas SA Co (Archirodon) 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 statement added.
The 39-month contract 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.”
“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 maximize value from Abu Dhabi’s vast hydrocarbon resources,” he added.
The Bab field upgrade project includes the development of oil producing wells, water injection wells, artificial lift wells, well-bays, let down stations, water injection clusters and other infrastructure required to sustain the production capacity of the field, ADNOC’s statement said.
(Reporting by Gerard Aoun, editing by Seban Scaria)
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