Al Yasat, a subsidiary of the Abu Dhabi National Oil Company (ADNOC) has awarded an engineering, procurement and construction (EPC) contract for the full development of the offshore Bu Haseer field to Abu Dhabi’s National Petroleum Construction Company (NPCC).
The agreement covers engineering, procurement, construction, and commissioning activities for offshore facilities, which will see production capacity from the Bu Haseer field increase from today’s 8,000 bpd to 16,000 bpd in 2020, ADNOC said in a statement on Monday.
According to ADNOC, a key feature of the award is that over half the value of the NPCC contract will feed back into the local economy under ADNOC’s In-Country Value program, which seeks to stimulate private sector partnerships and opportunities.
Abdulmunim Al Kindy, Upstream Director at ADNOC, said: “The award of the EPC contract, to further develop Bu Haseer, one of our most recent upstream developments, illustrates our commitment to growing production capacity and is part of our 2030 smart growth strategy, driving a more profitable upstream.”
NPCC provides engineering, procurement, project management, fabrication, installation and commissioning to project owners and operators. Established in 1973, NPCC is owned by Senaat, an Abu Dhabi Government Holding Company and Consolidated Contractors Group (CCC), an International Construction Group.
The Al Yasat joint venture includes two concession blocks, one offshore and one mixed onshore / offshore. The offshore block, in addition to Bu Haseer, includes a number of oil and gas fields currently under appraisal and development including Belbazem, Umm Al Dholou, and Umm Al Salsal. Bu Haseer is the first of these fields to be developed.
The anticipated oil in place from the entire offshore block is 1.5 Billion Standard Barrels. The onshore / offshore concession area is located to the south west of Abu Dhabi and Al Yasat is currently assessing this area’s full commercial potential.
Tayba Al Hashemi, Acting CEO of Al Yasat, and one of the first two female CEOs recently appointed by ADNOC said: “In little more than four years, along with our partners CNPC, we have moved from development planning to production from the Bu Haseer field. By any benchmark this is a significant achievement and we look forward with confidence to quickly moving Bu Haseer to full field development, enhancing the already attractive returns for ADNOC and our partners.”
Al Yasat, 60% owned by ADNOC and 40% by CNPC, was established in April 2014 to conduct the exploration, drilling and maintenance of wells, as required for the extraction of crude oil from reservoirs, as well as construction, operation and maintenance of all the necessary production facilities, conversion, processing, measurement, storage, transfer and delivery of crude oil from production wells to delivery points, in addition to the marketing or exporting of crude oil.