A contract worth up to $519 million was awarded by the Abu Dhabi National Oil Company (ADNOC) to further expand the scope of the world’s largest integrated three-dimensional (3D) onshore and offshore seismic survey, currently taking place in Abu Dhabi.
The expansion highlights the important role played by seismic surveying in helping ADNOC to identify and explore new hydrocarbon resources, as highlighted by the recent major discoveries of recoverable unconventional oil resources and conventional oil reserves reported earlier this week by the Supreme Petroleum Council (SPC) of Abu Dhabi.
Moreover the discovery of conventional oil and gas reserves and the unconventional gas resources which were added to ADNOC’s portfolio in 2019 were also supported by this mega seismic survey.
The contract was awarded to BGP Inc., a China National Petroleum Company (CNPC) subsidiary, represented by Al Masaood Oil Industry Supplies & Services Co. in the United Arab Emirates (UAE). This new award adds up to 85,000 km2 of the total area to be covered by the survey and enhances ADNOC’s commitment to unlocking the full potential of the vast hydrocarbon resources of Abu Dhabi.
Through ADNOC’s In-Country Value (ICV) program, 50 percent of the award value will flow back into the UAE’s economy, demonstrating how ADNOC continues to prioritize ICV as it invests responsibly to deliver its 2030 strategy.
“This award builds on the solid progress we are making in executing the world’s largest combined 3D seismic survey which is an important part of our strategy to accelerate the exploration and development of Abu Dhabi’s hydrocarbon resources. It further demonstrates ADNOC’s commitment to realizing the full potential of our conventional and unconventional oil and gas resources to ensure the UAE remains a long-term and reliable energy provider to the world. The award follows a competitive tender process that ensures a significant portion of the value will flow back into the UAE’s economy, supporting local businesses in line with the leadership’s wise directives.”
This contract increases the scope of the ongoing seismic mega survey to capture coastal areas, islands, and shallow water. It will use state-of-the-art technology, including cableless devices and a wide variety of seismic sources that are environmentally friendly.
The seismic acquisition will capture high-resolution 3D images at ultra-deep locations of the complex subsurface structure and help identify potential hydrocarbon reservoirs through the deployment of industry-leading technologies to provide high-density survey data which will be analyzed at the Thamama Subsurface center of ADNOC.
All of the successful exploration partners in the first block bid round in Abu Dhabi are leveraging this data and the data will also be available to successful bidders for a cost in the second bid round, which will begin to be awarded this year following the recent approval of the SPC.
ADNOC awarded the first set of seismic survey contracts in July 2018 and has so far reported nearly 60 percent success in executing the initial scope that includes onshore and offshore areas. The entire survey is on track to be completed in 2024, including the additional coastal scope.
Earlier this week the SPC announced the discovery of 22 billion Stock Tank Barrels (STB) of recoverable unconventional oil resources and a rise in conventional oil reserves of 2 billion STB, increasing the conventional reserves of the UAE to 107 billion STB.
In November 2019, the SPC announced increases of 7 billion STB of oil and 58 trillion standard cubic feet (TSCF) of conventional gas in hydrocarbon reserves and the discovery of a total of 160 TSCF of unconventional recoverable gas resources.
ADNOC carefully considers the degree to which bidders would optimize ICV in the execution of a project as part of the selection criteria for contract awards. This is an integrated framework in the tender evaluation process of ADNOC, aimed at fostering new local and international partnerships and business opportunities, fostering socio-economic growth and creating employment opportunities for Emiratis.
This award gave priority to UAE material sources, local suppliers and employees, as well as advanced technologies.
ADNOC is a leading diversified energy and petrochemicals group wholly owned by the Abu Dhabi Emirate. It’s mission is to maximize the value of the vast hydrocarbon reserves of the Emirate through responsible and sustainable exploration and production to help the economic growth and diversification of the United Arab Emirates.