Abu Dhabi oil giant ADNOC awards contracts of Dh1.16b for massive Bu Hasa project

Bu Hasa field
The Bu Hasa field is ADNOC’s biggest onshore production asset. The latest contracts have been split into two packages. Image Credit: Google Maps

Dubai: The Abu Dhabi energy giant ADNOC will invest up to Dh1.16 billion to connect the newly drilled “smart wells” to its main production facilities at Bu Hasa, which will sustain production capacity of 650,000 barrels per day (bpd). Bu Hasa is ADNOC’s largest onshore asset.

The engineering, procurement and construction (EPC) contract has been awarded in two packages by a subsidiary, ADNOC Onshore. Package 1 is valued at up to Dh582 million and has been awarded to China Petroleum Pipeline Engineering Co., while Package 2, with a value of up to Dh583.9 million to Robt Stone llc. The duration of the contracts is three years, with the option of a two-year extension.

Network of ‘smart wells’

The EPC contract will see up to 260 conventional and non-conventional smart wells installed, which will enable remote operations. The installed tie-ins will be different from the traditional ones used by ADNOC Onshore, as the contractors will procure all required equipment on an upfront basis. This allows for faster construction and well hand-over.

The EPC award follows a competitive tender process and will see over 50 per cent of the combined value of both awards flow back into the UAE economy under ADNOC’s ‘in-country value’ programme. “The award underpins our strategic objectives to expand production capacity and create a more profitable upstream business with over half of the contract value flowing back into the UAE’s economy, supporting local businesses and stimulating economic growth,” said Yaser Saeed Almazrouei, ADNOC Upstream’s Executive Director.