China Petroleum and Robt Stone awarded $318m Smart Wells contracts from ADNOC

The Abu Dhabi National Oil Company (ADNOC) announced in a statement that it has awarded contracts to connect newly drilled smart wells to the main production facilities at Bu Hasa, which will sustain production capacity of 650,000 barrels per day (bpd) at ADNOC’s largest onshore asset.

The value of the contract is up to $318 million (AED1.16 billion).

The Engineering, Procurement and Construction (EPC) contract has been awarded in two packages by ADNOC’s subsidiary, ADNOC Onshore.

Package 1:

The Project has been awarded to China Petroleum Pipeline Engineering Co. Ltd.

The value of signed contract is $158.6 million (AED582 million).

The duration of the contract is three years, with the option of a two-year extension.

Package 2:

The Project has been awarded to Robt Stone (ME) LLC.

The value of signed contract is $159.1 million (AED 583.9 million)

The duration of the contract 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.

The installed tie-ins will be different from traditional tie-ins previously used by ADNOC Onshore, as the contractors will procure all required equipment on an upfront basis allowing for faster construction and well hand-over.

Yaser Saeed Almazrouei, ADNOC Upstream Executive Director, said: “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.”

In 2018, ADNOC awarded a contract for the Bu Hasa Integrated Field Development Project (BUIFDP) to increase the production capacity of the asset to 650,000 bpd and sustain long-term production as part of its strategy to expand its crude oil production capacity to 5 million bpd by 2030.

This new award builds on the substantial progress made to date and will enable ADNOC Onshore to unlock greater value from the asset.

The Bu Hasa asset is located 200 kilometers south of Abu Dhabi city. It is one of ADNOC’s oldest oil fields that have been producing since 1965.

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