ADNOC to invest $1.4bn to expand its giant Bu Hasa field
Crude oil production capacity from Bu Hasa Field will increase from 550,000 to 650,000 barrels per day in line with ADNOC’s plan to increase its oil production capacity to 4mbpd by 2020
The Abu Dhabi National Oil Company (ADNOC) announced, today, a $1.4bn investment to upgrade and expand its Bu Hasa field, which will increase crude oil production capacity to 650,000 barrels per day (bpd).
An EPC contract has been awarded to Tecnicas Reunidas SA by ADNOC’s subsidiary, ADNOC Onshore, which operates the field. The scope of work is expected to take 39 months, and the upgrade will increase oil production capacity from 550,000 bpd to 650,000 bpd by the end of 2020. This is part of the company's plan to increase production to 4mbpd by 2020, and 5mbpd by 2030.
“This significant investment in the Bu Hasa field will enable production capacity to be increased and generate additional value," said ADNOC Group CEO Dr. Sultan Al Jaber. "We are on track to meet our production capacity target of 3.5mn barrels of oil per day by the end of this year – to 4 million barrels per day by the end of 2020 – and this contract is yet another sign of our clear commitment to making smart investments to maximize the value of Abu Dhabi’s oil resources and drive significant In-Country Value, in line with our wise leadership’s directives.”
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 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 AED 3 billion of value add to the UAE economy," said ADNOC Upstream Director Abdulmunim Al Kindy. "We are partnering with an organization 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.”
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.