ADNOC awards EPC contract for enhancing output from Bab oilfield

ADNOC awards EPC contract for enhancing output from Bab oilfield
Saif Alghfeli, CEO of ADNOC Onshore and Liu Haijun, president of CPECC sign the agreement, in the presence of (standing right to left) Dr Sultan Ahmed Al Jaber, UAE Minister of State and ADNOC group CEO, and China's Ambassador to the UAE His Excellency Ni Jian and Wang Yilin, chairman of CNPC.
Published: 23 November 2017 - 4:10 a.m.
By: Indrajit Sen

The Abu Dhabi National Oil Company (ADNOC) has announced a significant investment to upgrade its Bab field, re-energising one of its largest onshore producing assets to sustain and enhance output.

ADNOC’s plans to upgrade operations at its maturing Bab field will enable production levels to be sustained and production capacity to be increased from 420,000 barrels of oil per day (bpd) to 450,000 bpd by 2020.

For this purpose, ADNOC Onshore, ADNOC’s subsidiary which operates the field, has awarded an engineering, procurement and construction (EPC) contract to China Petroleum Engineering & Construction Corporation (CPECC), an affiliate of the China National Petroleum (CNPC), to carry out the works.

This is an important step towards delivery of the ADNOC group’s 2030 smart growth strategy that seeks to increase the Emirati oil giant’s crude oil production capacity and reduce cost, creating a more profitable upstream business.

“The decision to modernise our production infrastructure at the large Bab field, is another clear signal that ADNOC is making smart investments to increase production capacity, enhance the long-term productivity and maximise the profitability of Abu Dhabi’s oil reserves, as we create a more profitable upstream business, in line with our Supreme Petroleum Council approved 2030 growth strategy,” Dr Sultan Ahmed Al Jaber, UAE Minister of State and ADNOC group CEO, said of the project.

The asset upgrade will include the deployment of cluster drilling, in which multiple oil wells are co-located in one place, for the first time at Bab, reducing cost and the environmental footprint of drilling operations.

At the same time, digital oilfield technology will be introduced to remotely monitor and analyse well performance. Utilisation of advanced engineering and value-add technologies is fundamental to enhancing the profitability of ADNOC’s upstream business, by driving operational efficiencies and ensuring sustainable production from its maturing fields.

Abdulmunim Al Kindy, director of Upstream at ADNOC said: “CPECC has been selected to deliver this important project after an extremely competitive tendering process, ensuring we create the greatest value from the investment required at Bab and partner with an organisation which can deploy effective engineering and value-add technologies that support our company-wide drive for greater efficiency and reduced cost while maintaining highest safety standards.

“The Bab field already plays an important role in achieving ADNOC’s production capacity target of 3.5mn barrels of oil per day over the course of 2018. The deployment of advanced digital oilfield management technologies is a crucial enabler if we are to optimise recovery and deliver a more profitable upstream business, as we transform the company and balance efficiencies with the right investments for growth,” Al Kindy was quoted as saying in a press release.

In addition to upgrading the Bab production operations, the investment will increase water and gas handling capabilities and deliver an additional degassing and processing train, to be built alongside the existing seven trains that condition crude oil for export.

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