ADNOC awards $489mn EPC contract to upgrade Bab onshore field

ADNOC awards $489mn EPC contract to upgrade Bab onshore field
Published: 18 November 2019 - 7:15 a.m.
By: Carla Sertin

The Abu Dhabi National Oil Company (ADNOC) awarded a $489mn (AED 1.8bn) EPC contract to Archirodon to upgrade its giant Bab onshore field, one of its largest onshore producing assets.

The investment will re-energise ADNOC’s first field producing Murban grade crude to sustain long-term crude oil production capacity and reinforces ADNOC’s commitment to maximising value from Abu Dhabi’s vast hydrocarbon resources as it delivers its 2030 smart growth strategy.

Archirodon Construction Overseas SA Co (Archirodon) will build the facilities and infrastructure required to sustain long-term crude oil production capacity of the field at 485,000 barrels per day (bpd).

Abdulmunim Saif Al Kindy, executive director of ADNOC’s upstream directorate, said: “This award follows an extremely competitive and rigorous tender process that ensures that over 75 percent of the award value will flow into the UAE’s economy, stimulating local economic growth and nurturing new business opportunities for the private sector, in line with the leadership’s wise directives. The Bab field is integral to our strategy to create a more profitable upstream business and this award will ensure that we sustain long-term oil production capacity from a maturing field, underlining our commitment to making smart investments and engaging value-add partners to unlock and maximize value from Abu Dhabi’s vast hydrocarbon resources.”

The scope of the Bab field upgrade project includes the development of oil producing wells, water injection wells, artificial lift wells, well-bays, let down stations, water injection clusters and other infrastructure required to sustain the production capacity of the field.

Yaser Saeed Al Mazrouei, CEO of ADNOC Onshore, said: “The Bab field already plays an important role in supporting ADNOC’s production capacity mandates and this upgrade complements ADNOC’s upstream growth plans. The project will enable us to minimise life-cycle costs on the field and will deploy cutting-edge technologies to allow us to progressively and efficiently unlock the full potential of the field’s existing assets and wells, while tapping into new reservoirs to sustain long-term production output.”

As part of the selection criteria for the contract, ADNOC carefully considered the extent to which bidders would maximize In-Country Value in the delivery of the project. This is a mechanism integrated into ADNOC’s tender evaluation process, aimed at nurturing new local and international partnerships and business opportunities, catalyzing socio-economic growth and creating job opportunities for UAE nationals.

With more than $367mn (AED 1.35bn) expected to flow back into the UAE’s economy over the lifetime of the project, the award will give significant stimulus to the country’s products and services and create additional skilled employment opportunities for UAE nationals.

The expansion of the Bab field comes two years after ADNOC Onshore awarded a contract to increase the capacity of the field from 420,000 to 450,000 bpd by 2020.

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