The Abu Dhabi National Oil Company (ADNOC) have announced an investment of AED5.1bn ($1.4bn) to upgrade and expand its Bu Hasa oil field, located 200km south of Abu Dhabi city.
The upgrade and expansion is expected to ramp up the crude oil production capacity at the Bu Hasa oil field from 550,000 bpd to 650,000 bpd by the end of 2020.
ADNOC Onshore, which operates the field, has awarded engineering, procurement and construction (EPC) contract of the expansion project to Spanish based engineering company Tecnicas Reunidas.
The asset upgrade and expansion include facilities, new pipeline networks and production hubs. In addition, the project will see the conversion of three trains in a central degassing station and other related facilities.
As part of the project, the number of inactive wells at the Bu Hasa oil field will be reduced.
UAE Minister of State and ADNOC Group CEO Sultan Ahmed Al Jaber said: “This significant investment in the Bu Hasa field will enable production capacity to be increased and generate additional value.
“We are on track to meet our production capacity target of 3.5 million barrels of oil per day by the end of this year, and, as we look beyond that to 4 million barrels per day by the end of 2020, this contract is yet another sign of our clear commitment to making smart investments to maximize the value of Abu Dhabi’s oil resources and drive significant In-Country Value, in line with our wise leadership’s directives.”
Production at the Bu Hasa oil field, which is one of ADNOC’s oldest oil fields, was started in 1965. The field is operated by ADNOC Onshore, a subsidiary of ADNOC.
The expansion project will also include streamlining of water handling and implementation of a second gas lift recovery phase.
It is expected to contribute to ADNOC’s 2030 smart growth strategy, under which the company aims to increase its crude oil production capacity.
Recently, ADNOC received an approval from the Supreme Petroleum Council (SPC) for its plans to increase its oil production capacity to 4 million barrels per day (mmbpd) in 2020 and 5mmbpd in 2030.
The company plans to make an investment of AED486bn ($132.33bn) to expand its production capacity.