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The Abu Dhabi National Oil Company (ADNOC) has announced a significant investment to upgrade its giant Bab onshore field, one of its largest onshore producing assets, located 160 km southwest of Abu Dhabi city

Bab ComplexBab field is integral to ADNOC’s target to achieve oil production capacity of four million bpd by the end of 2020 and five million bpd by 2030. (Image source: bcw-global)

The investment - valued at US$489mn - 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.

The investment will be executed through an engineering, procurement and construction (EPC) contract that will achieve In-Country value in excess of 75 per cent, underscoring ADNOC’s drive to enabling sustainable value for the UAE and supporting the growth and diversification of the nation’s economy.

ADNOC Onshore - a subsidiary of ADNOC and the operator of the field - awarded the EPC contract to Archirodon Construction Overseas SA Co to build the facilities and infrastructure required to sustain long-term crude oil production capacity of the field at 485,000 bpd.

The contract, which has a term of 39 months, was announced at the Abu Dhabi International Petroleum Exhibition and Conference, ADIPEC.

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 per cent 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 maximise value from Abu Dhabi’s vast hydrocarbon resources,” he added.

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.