Abu Dhabi National Oil Company (ADNOC) has announced a “major capital investment” in its Al Dhafra Petroleum joint venture to establish facilities and oil production from the Haliba field.
Production at the field on Abu Dhabi’s southeast border is expected to start at 20,000 barrels per day in mid-2019, increasing to 40,000 barrels per day by 2020.
A Dhs1.25bn ($340.3m) engineering, procurement and construction contract has been awarded to India’s Larsen & Toubro Hydrocarbon Engineering for the project.
ADNOC also awarded a 10 per cent interest in its offshore Lower Zakum concession to a consortium of Indian oil companies earlier this week as part of a series of pacts signed during Indian Prime Minister Narendra Modi’s visit.
Al Dhafra is a joint venture with Korea National Oil Corporation and GS Energy.
Phase one of the work will include 32 wells and the construction of a 65km pipeline form Haliba to ADNOC’s Asab Central Degassing Station for processing and is scheduled for completion by 2020.
Phase two will tap into surrounding fields with the potential to increase production beyond 40,000 bpd by early 2022.
“The infrastructure investment will increase our group-wide production capacity and optimise our assets by utilising our existing onshore facilities, allowing ADNOC to develop previously untapped oil reserves in an efficient way,” said ADNOC upstream director Abdulmunim Al Kindy.
The project forms part of ADNOC’s 2030 strategy to increase the profitability of its upstream and downstream operations.
Earlier this month, the company nnounced plans to invest $3.1bn in a project to introduce crude processing flexibility at its Ruwais oil refinery.