Adnoc plans $763.7 million investment to expand capacity to 5.0 million barrels/day by 2030

Web DeskWeb Editor

15th Jul, 2021. 03:13 pm
adnoc

ABU DHABI: In a bid to expand its production capacity to 5.0 million barrels/day by 2030, Abu Dhabi National Oil Company (Adnoc) will invest $763.7 million (Dh2.8 billion) in integrated rigless services across six of its artificial islands in the Upper Zakum and Satah Al Razboot (SARB) fields, Emirati official news agency reported.

Ahmad Saqer Al-Suwaidi, CEO of Adnoc Offshore, said: “These contracts are an important contributor to Adnoc Offshore’s plans to build our production capacity to over 2 million barrels a day in the coming years to support the ADNOC Group’s smart growth strategy.”

The investment is in the form of three contracts awarded by Adnoc Offshore to Schlumberger, Adnoc Drilling, and Halliburton after a competitive tender process.

Schlumberger’s share of the award is valued at $381.18 million (Dh1.4 billion); Adnoc Drilling’s share is valued at $228.71 million (Dh839.58 million), and Halliburton’s share is valued at $153.87 million (Dh564.85 million).

Over 80 percent of the total award value will flow back into the UAE‘s economy under Adnoc’s In-Country Value (ICV) programme over the 5-year duration of the contracts, reinforcing Adnoc’s commitment to ensuring more economic value remains in the country from the contracts it awards.

Yaser Saeed Almazrouei, Adnoc Upstream Executive Director, said: “These important awards for integrated rigless services will drive efficiencies of drilling and related services, and optimise costs in our Offshore operations as we ramp up our drilling activities to increase our production capacity and enable gas self-sufficiency for the UAE.

The scope of the contracts includes coiled tubing services with thru-tubing downhole tools, stimulation services, including equipment and chemicals/fluid systems, surface well testing services, wireline, and production logging services and tools, saturation monitoring, and well integrity.

Previously, Adnoc Offshore’s rigless services were provided through several discrete service-specific contracts. Unifying the scope through integrated service contracts, underpins Adnoc’s smart approach to procurement and provides Adnoc Offshore with operational flexibility while enabling cost efficiencies and single point responsibility by the contractors.

The six artificial islands covered by the awards are Asseifiya, Ettouk, Al Ghallan, and Umm Al Anbar in the Upper Zakum field and Al Qatia and Bu Sikeen in the SARB field.

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