UAE’s state-owned oil company, Abu Dhabi National Oil Company (ADNOC) has awarded the UAE’s National Petroleum Construction Company (NPCC) a $744 million worth contract to completely develop the offshore Belbazem block.
The engineering, procurement, and construction contracts were awarded by ADNOC subsidiary Al Yasat, a joint venture between the state-owned oil company and China National Petroleum Corporation (CNPC).
The Belbazem block is being developed to produce 45,000 barrels of light crude per day, with the first barrel expected in 2023. The development is part of ADNOC’s plan to increase production capacity to 5 million barrels per day by 2030.
Belbazem, Umm Al Salsal, and Umm Al Dholou are the three fields that make up the offshore block. ADNOC owns a 60 percent stake in Al Yasat, with China’s CNPC holding the remaining 40 percent.
Mr. Yaser Almazrouei, ADNOC Upstream Executive Director remarked that “NPCC was selected after a rigorous tender process that ensures it will deploy best-in-class technology and expertise to execute this strategic project, with a substantial part of the award value flowing back into the UAE’s economy.”
According to ADNOC’s in-country value program, about 65 percent of the award value will be returned to the UAE. By 2023, the Belbazem block, located 120 kilometers northwest of Abu Dhabi, is expected to generate 27 million cubic feet of associated gas per day.
Al Yasat participated in a front-end engineering and design competition before receiving the EPC award to optimize the project’s cost and time efficiencies. After removing the need for technical bids, the company was able to cut the tender time by up to 12 months.
According to ADNOC, the shortened tendering process saved Al Yasat Petroleum around $190 million in capital expenditure.
Al Yasat Acting Chief Executive Officer Mr. Shaheen Al Mansoori pointed out that “the Feed competition and EPC award for the Belbazem offshore block highlight Al Yasat’s focus on costs and competitive approach to ensure we can commercially develop our concession areas and deliver long-term and sustainable value for ADNOC and our partner CNPC.”
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