Redirecting 65% of the contract value to the local economy

“ADNOC” awards a contract worth 2.73 billion dirhams to develop the “Balbazem” offshore fields

ADNOC seeks to achieve the maximum possible value from Abu Dhabi's fields.

From the source

Abu Dhabi National Oil Company (ADNOC) announced yesterday that it has awarded a contract worth 2.73 billion dirhams ($ 744 million) to develop the fields located in the “Balbazim” marine concession area, confirming the company's endeavor to achieve the maximum possible value from Abu Dhabi fields at a time. In which it continues its efforts to increase its oil production capacity to five million barrels per day by 2030.

ADNOC stated, in a statement, that the “Balbazem” area is located 120 kilometers northwest of Abu Dhabi city, and it consists of three fields called the marginal marine fields, namely: “Balbazim”, “Umm Al Salsal” and “Umm Al Dhulou”. .

partnership

The «Al Yasat Petroleum Operations Ltd.» (Al Yasat), a subsidiary of «ADNOC» and a joint venture with the China National Petroleum Corporation (CNBC), awarded the «National Petroleum Construction Company» (NPCC) a contract for the implementation of engineering, procurement and construction works.

ADNOC owns a 60% stake and CNBC 40% in (Al Yasat), which strengthens the strong bilateral relations and energy partnership between the UAE and China.

Competitive

The award of the contract follows a competitive bidding process, whereby 65% ​​of the total value of the contract will be redirected to the local economy through the ADNOC program, to enhance the in-country value, which reflects ADNOC's continuing to give priority to enhancing in-country value during the implementation of its strategy. Integrated 2030 for smart growth.

commitment

"The awarding of this contract reflects our commitment to achieving the maximum possible value from all Abu Dhabi's hydrocarbon resources, for the benefit and benefit of the UAE, its people and our partners," said CEO of ADNOC Exploration, Development and Production.

He added: “The National Petroleum Construction Company was chosen after a rigorous and competitive bidding process, ensuring that it will use the latest technologies and expertise to implement this strategic project, and redirect a large percentage of the value of this contract to the UAE economy to stimulate local economic growth, in line with The directives of the wise leadership of the UAE ».

Produce

Al-Mazrouei indicated that the scope of the contract award covers the implementation of engineering, procurement, construction and operation works for the required marine facilities, to enable the achievement of a full production capacity of 45,000 barrels per day of light crude, with a density of about 35 degrees, according to the classification of the American Petroleum Institute, and 27 million standard cubic feet of associated gas. From the "Balbazim" region, indicating that the first oil production is expected to start in 2023.

Contest

Al-Mazrouei stated that within the framework of the preliminary process for awarding the contract for the implementation of engineering, procurement and construction works, Al-Yasat Company conducted a competition on preliminary engineering designs among the bidders to promote the project, pointing out that this initiative contributed to reducing the tender schedule by up to 12 months, through Eliminating the need for the technical bidding process for the engineering, procurement and construction stage, and it also contributed to saving capital expenditures of about 697.3 million dirhams ($ 190 million).

Cut costs

For his part, the Acting CEO of Al-Yasat, Shaheen Al-Mansouri, said that “holding a competition on initial engineering designs and awarding the engineering, procurement and construction works contract for the (Balbazim) marine area, confirms the (Al-Yasat) approach aimed at focusing on competitiveness and reducing costs , To ensure our ability to develop our commercial concession areas, and to provide long-term sustainable value for (ADNOC) and our partner China National Petroleum Corporation. ”

Scope of the project

The scope of the project includes the implementation of three offshore wellhead towers, at a rate of one in each of the three fields in the "Balbazem" area, to connect pipelines and submarine cables to Zirku Island, located about 60 kilometers from the "Balbazim" field.

The project also covers the development of new water injection facilities, treatment of produced water, gas pressure, and associated facilities, as well as development work to link with existing facilities on Zirku Island.

• Enabling the Balbazim fields to achieve a production capacity of 45,000 barrels per day of crude oil.

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