Abu Dhabi lets oil field upgrade EPC contracts

Eric Watkins
OGJ Oil Diplomacy Editor

LOS ANGELES, Jan. 27 -- Abu Dhabi Co. for Onshore Oil Operations (ADCO) has awarded two engineering, procurement, and construction contracts to upgrade production capacity at its Asab, Sahil, and Shah fields.

Petrofac International Ltd. received a $2.3 billion contract for Asab (package A) field, while a $1.2 billion contract for Sahil and Shah fields' (package B) expanded development was awarded to Tecnicas Reunidas 60% and Consolidated Contractors Corp. (CCC) 40%.

Under its 44-month contract, Petrofac will provide EPC services to upgrade the production capacity of Asab field which is central to ADCO's overall development plan of increasing its production to 1.8 million b/d of oil from the current 1.4 million b/d.

In addition to upgrading Asab field's production capacity, Petrofac will upgrade the facility's capacity to accept increased production from Sahil, Shah, and other southeastern fields, and upgrade associated utilities and water handling facilities.

Tecnicas Reunidas said the scope of its work includes development of detailed engineering, equipment and materials supply, and construction for Sahil and Shah expanded development project, which is scheduled for completion in 2012.

Tecnicas said its involvement in the project will be concentrated mainly on oil production flow lines, primary separation through central and satellite degassing facilities, gas compression, transfer lines, oil pumping facilities, main oil pipelines, and produced water handling.

CCC's involvement will mainly be the construction works related to the engineering and procurement activities, plus the connecting pipelines to the Asab main central facilities.

In addition to Asab, Sahil, and Shah fields, ADCO produces oil from the Bab and Bu Hasa fields, which are linked by some 450 km of pipeline, with storage and shipping facilities at Jebel Dahanna. Together, the five fields produce 1.4 million b/d, or about 60% of the UAE's total output.

In Asab, Bab, Bu Hasa, and Sahil, water injection is used to maintain reservoir pressure and optimize oil recovery. A gas injection system is used at Bab and Bu Hasa fields. A sixth field, Jarn Yaphour, came on stream in 1993, and its production is transported to Umm Al-Nar refinery for treatment.

ADCO is a joint venture of Abu Dhabi National Oil Co. (ADNOC), which holds 60%, and a consortium of Royal Dutch Shell, Total SA, ExxonMobil Corp., BP PLC, and Partex, which shares the remaining 40%.

Contact Eric Watkins at hippalus@yahoo.com.

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