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Abu Dhabi awards $1.6bn hydrocarbon survey contract to China National Petroleum unit

Abu Dhabi awards $1.6bn hydrocarbon survey contract to China National Petroleum unit

Chinese President Xi Jinping will begin a three-day visit to the UAE on Thursday

Abu Dhabi National Oil Company (ADNOC) has awarded contracts worth Dhs5.88bn ($1.6bn) to a subsidiary of China National Petroleum Company (CNPC) for what is claimed to be the world’s largest continuous 3D onshore and offshore seismic survey

The agreement, signed on the eve of a UAE state visit by Chinese President Xi Jinping, will cover 30,000sqkm offshore and 23,000sqkm onshore and is designed to discover new hydrocarbon resources.

Read: UAE turns red as it prepares for Chinese President’s visit

BGP Inc, which is represented in the UAE by Al Masaood Oil Industry Supplies & Services Co, will produce high resolution 3D images of structures up to 25,000ft below the surface using advanced technologies designed to improve efficiency and reduce operational time.

“The announcement of the world’s largest continuous 3D seismic survey, and, with it, the deployment of cutting-edge exploration technologies is an important step in realising the full potential of Abu Dhabi’s conventional and unconventional oil and gas resources as we deliver on our 2030 smart growth strategy,” said ADNOC group CEO Dr Sultan Ahmed Al Jaber.

“The scale of the project shows ADNOC’s commitment to upstream investment and to bolstering our oil and gas reserves and production for the long-term. The award, following a highly competitive bid process, also represents another key milestone in ADNOC’s thriving partnership with CNPC, and the UAE’s strategic energy partnership with China.”

BGP will use seismic streaming vessels and ocean bottom nodes to acquire offshore data for the survey, which is due to be completed by 2024.

This data will be used by geoscientists to model potential hydrocarbon reservoirs and identify future oil and gas development.

CNPC is existing ADNOC partner. The company owns 40-year stakes in Abu Dhabi onshore and offshore concessions and is a 40 per cent joint venture partner in Al Yasat Petroleum.

Read: UAE’s ADNOC awards China’s CNPC 8% stake in onshore concession

Chinese President Xi Jinping is due to arrive in the UAE on Thursday for a three-day visit designed to boost ties.

Several UAE companies have announced China-related projects this week, with developer Emaar announcing plans to build the Middle East’s largest Chinatown in its Dubai Creek Harbour Tower development while DP World revealed plans to launch a new Traders Market with Chinese partner Zhejiang China Commodities City.

Read more: Emaar to build Middle East’s largest Chinatown at Dubai Creek Harbour

Dubai’s DP World, Chinese group to open new Traders Market at JAFZA

Hala China, a joint initiative between Meraas and Dubai Holding launched this week, also aims to improve economic and cultural exchange and increase investment cooperation between Dubai and China.

Also read: New Chinese radio station launched in Dubai

Trade exchange between the two countries grew 15.1 per cent last year from $46.3bn in 2016 to $53.3bn in 2017.

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