07 Mar 2022 | 10:18 UTC

ADNOC awards $227 mil contract for EOR at Bab field to boost Murban crude output

Highlights

Project will use polymers and capture CO2 to be injected into Bab

It will boost Bab's recoverable reserves by as much as 70%

Murban accounts for about half of ADNOC's oil production capacity

ADNOC Onshore, a subsidiary of state-owned Abu Dhabi National Oil Co, has awarded a $227 million contract for enhanced oil recovery that will help boost recoverable reserves from the Bab field, adding more barrels of the company's flagship Murban grade, which underpins its futures contract.

ADNOC will use advanced polymers and CO2 captured from the company's carbon capture utilization and storage facility to help boost the field's recoverable reserves by up to 70%, it said in a statement March 7. RobStone ME won the contract.

The project is part of ADNOC's plans to ramp up production to 5 million b/d by 2030 from about 4 million b/d now, it added.

Murban, which currently accounts for around half of the company's oil production capacity, is one of four grades produced by ADNOC. The crude underpins the Murban futures contract on ICE Future Abu Dhabi, or IFAD, which was launched on March 29, 2021.

Murban OSPs

ADNOC sets the official selling price for Murban crude, using the monthly average of the Singapore marker price of Murban futures on IFAD, which go to delivery two months in advance.

The OSPs for ADNOC's Upper Zakum, Das and Umm Lulu grades are priced at a differential to the Murban OSP.

Murban is the second physically delivered futures contract to trade on a regional exchange after the Dubai Mercantile Exchange's Oman crude futures.

It is also a deliverable grade in the S&P Global Commodity Insights Platts benchmark Dubai and Oman crude assessments.