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ADNOC awards $744 mil contract to develop offshore block amid oil capacity boost

Highlights

Contract awarded to UAE's NPCC

First oil from block expected in 2023

ADNOC plans to hit 5 mil b/d output capacity by 2030

  • Author
  • Dania Saadi
  • Editor
  • Aastha Agnihotri
  • Commodity
  • Natural Gas Oil

Abu Dhabi National Oil Co. has awarded a $744 million contract to UAE-based National Petroleum Construction Corp., or NPCC, to develop an offshore block, as part of plans of hitting 5 million b/d oil production capacity by 2030.

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Al Yasat Petroleum Operations Co. -- an ADNOC joint venture with China's CNPC -- awarded the engineering, procurement and construction contract to NPCC, ADNOC said in a statement May 25. ADNOC has a 60% stake in Al Yasat and CNPC the remaining.

The block, which is expected to produce first oil in 2023, comprises three offshore fields: Belbazem, Umm Al Salsal and Umm Al Dholou. The contract includes developing the block's full production capacity of 45,000 b/d of light crude with API gravity of around 35 degrees and 27 MMcf/d of associated gas.

ADNOC, which currently has an oil production capacity exceeding 4 million b/d, is partnering with a number of international oil companies to help reach its 2030 target.

Capex to boost growth

The company plans to spend around $122 billion between 2021 and 2025 on growth plans, including the oil capacity boost.

Al Yasat's concession areas cover two blocks: one offshore and one mixed onshore/offshore. The offshore block includes oil fields at Bu Haseer, Belbazem, Umm Al Salsal, Umm Al Dholou, and Arzanah while the onshore/offshore block is located southwest of Abu Dhabi city. Bu Haseer is the first of Al Yasat's fields to come online following onset of production in 2018.

ADNOC awarded a contract worth as much $318 million to help sustain oil output capacity at Bu Hasa field at 650,000 b/d, it said in a statement May 18. The engineering, procurement and construction contract will include the installation of up to 260 conventional and non-conventional smart wells, enabling remote operations.