The first oil field that Arabian Gulf produced is Bu Hasa, located in the northern part of the Rub al Khali Basin. It is the onshore oil asset that holds oil reserves of 6.5 billion barrels. The enormous company specializing in energy ADNOC plans to invest up to Dh1.16 billion to connect the “smart wells” to the largest onshore field.
Abu Dhabi National Oil Company (Adnoc) awarded the engineering, procurement, and construction (EPC) contract in two packages. One of the packages is awarded to China Petroleum Pipeline Engineering Co which is valued at around up to Dh582 million. The other package is awarded to Robt Stone LLC which is valued at around up to Dh583.9 million. Giving an option to extend the contract to two years the duration is primarily set for three years.
With the incorporation of the contracts, it is planned to optimize the production performance and sustain the present capacity of 650,000 barrels a day (bpd). By 2030, it plans to boost the production capacity to nearly 5 million b/d.
Smart Wells ensures the usage of high-end technology to improve profitability and efficiency of the production.
There will be an installation of around 260 conventional and non-conventional smart wells as per the contracts this will ensure remote operations.
According to Adnoc; the contractors will have the leverage to procure all the equipment on an upfront basis to complete the construction and hand it over faster, unlike the traditional ones.
According to Adnoc upstream executive director Yaser Saeed Almazrouei, the awards show utilization of modern technologies with state-of-the-art remote capabilities to build smart wells that offer improved production and add more value by driving better performance from the assets and resources.
Additionally, the contract will help the economic recovery as the expansion of production capacity will offer an upstream business that will generate 50% of the value of awards as inward cash flows to build UAE’s economy under ADNOC’s ‘in-country value’ program. The contracts will also benefit the small and local businesses and drive economic growth.
The massive oil producer plans to inject an additional $122 billion between 2021 and 2025 on projects that entail capacity ramp-up.
The distribution report of ADNOC for the previous year was AED 2.4billion in net profit, the last quarter recorded AED 851million. The oil retailer opened 64 new stations in 2020.