ADNOC Builds Towards First Oil Production From One Of Its Youngest Companies
Al Dhafra Petroleum awards EPC contract for new Haliba Field in line with ADNOC’s strategy to deliver a more profitable Upstream business
The Abu Dhabi National Oil Company (ADNOC) has announced a significant milestone for one of its youngest operating companies, Al Dhafra Petroleum, with a major capital investment to establish facilities and enable oil production from Haliba field, located along the south-east border of Abu Dhabi.
ADNOC's plans to start production from Haliba with an initial capacity of 20,000 barrels of oil per day by mid-2019, progressively increasing to 40,000 barrels per day by 2020. An Engineering, Procurement and Construction (EPC) contract has been awarded for the works to Larsen & Toubro (L&T) Hydrocarbon Engineering Ltd, by ADNOC subsidiary, Al Dhafra Petroleum who operate the field.
Phase one of the EPC work will include 32 wells and construction of a 65km pipeline to carry crude oil from Haliba field wells to ADNOC Onshore's Asab Central Degassing Station for processing. Stabilized crude oil will then be transported via ADNOC Onshore's existing main oil lines to the marine export terminals. The new production infrastructure will leverage the latest digital oil field automation technology to improve efficiency, enhance safety and optimize costs.
The investment is an important step towards delivery of ADNOC's 2030 smart growth strategy that seeks to increase oil and gas production capacity and optimize performance, as it delivers a more profitable upstream business. Al Dhafra Petroleum is the first joint venture between ADNOC and Korea National Oil Corporation (KNOC) and GS Energy, which is represented by the Korean Abu Dhabi Oil Consortium (KADOC), and the announcement shows the continued success of this partnership.
Abdulmunim Al Kindy, Director of Upstream at ADNOC said: "This is a major milestone for Al Dhafra Petroleum, leading to the delivery of first oil in 2019. The infrastructure investment will increase our Group-wide production capacity and optimize our assets by utilizing our existing onshore facilities, allowing ADNOC to develop previously untapped oil reserves in an efficient way. It is an important step towards enhancing the profitability of ADNOC's Upstream business as we deliver on our 2030 Strategy.
"L&T Hydrocarbon Engineering has been selected to deliver this project after a competitive tendering process, ensuring that as shareholders, ADNOC and KADOC, maximize value from the investment in Haliba, and we partner with an organization that can deploy advanced engineering and technology to support our Group-wide drive for greater efficiencies, increased productivity and reduced costs."
Phase one of the Haliba Development Project will be completed in 2020 with phase two delivering future expansion of Al Dhafra Petroleum's production capacity by tapping into surrounding marginal fields and prospects, potentially increasing production capacity to beyond 40,000 barrels per day by early 2022.
As part of ADNOC's commercial evaluation process, the company carefully considered the extent to which bidders for the Haliba EPC contracts would help to drive in-country value (ICV) for the UAE. By integrating ICV criteria and ensuring that the contractor implements and develops ICV, ADNOC is delivering on its new in-country value strategy, aimed at nurturing new local and international partnerships and opportunities, catalysing socio-economic growth, creating job opportunities and improving knowledge transfer.
Al Dhafra Petroleum is a young and dynamic organization, which was established in 2013. It is focused on exploring and developing its concession areas to assess the commercial value of several promising new fields.