Adnoc awards $324m of contracts to optimise onshore oil field operations

The contracts include the construction of flowlines and wellhead installations at Bab, Asab, and Sahil fields

General view of the ADNOC headquarters is seen in Abu Dhabi, United Arab Emirates, December 23, 2018. Photo taken December 23, 2018. REUTERS/Hamad I Mohammed

Abu Dhabi National Oil Company (Adnoc) awarded $324 million (Dh1.19 billion) in contracts to optimise operations and boost efficiencies across several onshore oil fields in Abu Dhabi.

The contracts were awarded by Adnoc's onshore arm to Abu Dhabi-based Robt Stone and the UAE arm of Oman's Galfar Engineering and Contracting, Adnoc said in a statement on Monday.

The two companies will provide and install flowlines and wellhead installations at the Bab, Asab and Sahil onshore oil fields in Abu Dhabi as well as building a new bypass system to provide critical backup for existing crude receiving stations at the Jebel Dhanna and Fujairah export terminals.

“These contracts build on the momentum of our recent awards for upgrades on the Jebel Dhanna terminal and underline our commitment to unlocking the full potential of our assets to deliver increased value for our shareholders,” Omar Obaid Al Nasri, chief executive of Adnoc Onshore, said.

The award for flowlines and wellhead installations will “help sustain long-term production at our Bab, Asab and Sahil fields while the award for the bypass system will provide critical backup for the existing crude receiving station connecting our fields and export terminals, to ensure business continuity and resilience,” he added.

The work is being split into three contracts. Galfar Engineering and Contracting will carry out a $71m contract to procure and construct flowlines and wellhead installations for the Asab and Sahil fields.

The second contract awarded to Robt Stone, worth $168m, will see it source and build flowlines and wellhead installations for the Bab field. Both of these are expected to be completed within five years.

The third contract, also being carried out by Galfar Engineering and Contracting, is valued at $84m and will see it deliver the bypass system providing backup to the crude receiving stations at the Jebel Dhanna and Fujairah export terminals. This project is expected to be completed in 30 months.

More than 70 per cent of the combined award value will flow back into the UAE economy under Adnoc’s In-Country Value (ICV) programme, the company said.