RIYADH: The Abu Dhabi National Oil Co. (ADNOC), announced today, an investment of up to $318 million to connect newly drilled smart wells to the main production facilities at Bu Hasa, WAM reported.
This will sustain a 650,000 barrels per day (bpd) production capacity at ADNOC’s largest onshore asset.
The engineering, procurement and construction (EPC) contract has been awarded in two packages by ADNOC’s subsidiary, ADNOC Onshore.
Package 1 is valued at up to $158.6 million and has been awarded to China Petroleum Pipeline Engineering Co. Ltd, while Package 2, with a value of up to $159.1 million has been awarded to Robt Stone (ME) LLC.
The duration of the contracts is three years, with the option of a two-year extension.
The EPC contract will see up to 260 conventional and non-conventional smart wells installed, which enable remote operations.
"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," said ADNOC Upstream Executive Director, Yaser Saeed Almazrouei.
"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, " he added.
Two sources told Reuters on Monday that ADNOC has started virtual meetings with potential investors ahead of the planned initial public offering (IPO) of its drilling units.