ADNOC awards $318mn worth EPC contract to link smart wells at Bu Hasa

By Shilpa Annie Joseph, Desk Reporter
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UAE’s state-owned oil company, Abu Dhabi National Oil Company (ADNOC) will invest up to $318 million (AED1.16 billion) to link newly drilled smart wells to the main production facilities at Bu Hasa, allowing the company’s largest onshore asset to maintain a production capacity of 650,000 barrels per day (bpd).

ADNOC’s subsidiary, ADNOC Onshore, awarded the infrastructure, procurement, and construction (EPC) contract in two packages. Package 1 was awarded to China Petroleum Pipeline Engineering Company (CPP) for up to $158.6 million (AED582 million), while Package 2 was awarded to Robt Stone (ME) for up to $159.1 million (AED 583.9 million). The contracts are for three years, with the possibility of a two-year extension.

The EPC contract was awarded after a competitive tender process, with over half of the total value of both contracts flowing back into the UAE economy through ADNOC’s In-Country Value (ICV) program, demonstrating how ADNOC continues to emphasize ICV as it implements its 2030 strategy.

Yaser Saeed Almazrouei
Yaser Saeed Almazrouei
Upstream Executive Director

“This EPC award demonstrates how ADNOC is leveraging advanced technologies, such as smart wells with state-of-the-art remote capabilities, to drive higher performance from our assets and resources, and to generate additional value. 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.”

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

ADNOC carefully assessed the degree to which bidders would optimize ICV in the project execution as part of the award selection criteria. This is a framework built into ADNOC’s tender evaluation process to foster new local and international partnerships and business opportunities, as well as fostering socio-economic development and job creation for UAE citizens. The successful bids prioritized UAE sources for materials, local suppliers, and workforce.

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