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Abu Dhabi’s ADNOC invests Dhs1.8bn to upgrade its Bab onshore field

Abu Dhabi’s ADNOC invests Dhs1.8bn to upgrade its Bab onshore field

The investment will galvanise the company’s first Murban grade crude producing field

The Abu Dhabi National Oil Company (ADNOC) has announced its intent to upgrade its Bab onshore field via a Dhs1.8bn($489m) investment.

The investment will galvanise the company’s first Murban grade crude producing field to support its long-term oil production capabilities, a statement said.

The investment is being made through an engineering, procurement and construction (EPC) contract.

The upgrade project will cover the development of oil producing wells, water injection wells, artificial lift wells, well-bays, let down stations, water injection clusters and other infrastructure required to support the field’s production capacity, the statement said.

ADNOC Onshore, ADNOC’s subsidiary and operator of the field, awarded the contract to Archirodon Construction Overseas SA Co to build the infrastructure to support the field’s long-term daily crude oil production of 485,000 barrels.

“The Bab field already plays an important role in supporting ADNOC’s production capacity mandates and this upgrade complements ADNOC’s upstream growth plans,” said Yaser Saeed Al Mazrouei, CEO, ADNOC Onshore.

Over the timeline of the contract, spread over 39 months, more than Dhs1.35bn ($367m) is expected to flow back into the UAE’s economy, creating employment opportunities for its nationals, the statement said.

“The Bab field is integral to our strategy to create a more profitable upstream business and this award will ensure that we sustain long-term oil production capacity from a maturing field, underlining our commitment to making smart investments and engaging value-add partners to unlock and maximize value from Abu Dhabi’s vast hydrocarbon resources,” said Abdulmunim Saif Al Kindy, executive director, ADNOC’s upstream directorate.

Also read: BP, Total, Shell, Vitol take stakes in Abu Dhabi oil bourse

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