Gulf Construction Online - Archirodon secures big Adnoc EPC contract

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An Adnoc facility ... Archirodon to develop its Bab onshore field.

Archirodon secures big Adnoc EPC contract

01 December 2019

Abu Dhabi National Oil Company (Adnoc) says one of its units has awarded a major engineering, procurement and construction (EPC) contract to Archirodon Construction Overseas for development of its giant Bab onshore field, located 160 km southwest of the UAE capital.

The contract, which has a term of 39 months, was announced by Adnoc Onshore, a subsidiary of Adnoc and the operator of the field, at the Abu Dhabi International Petroleum Exhibition and Conference (Adipec) last month.

As per the deal, Archirodon will start building the facilities and infrastructure required to sustain long-term crude oil production capacity of the field at 485,000 barrels per day (bpd).

The scope of the Bab field upgrade project includes the development of oil producing wells, water injection wells, artificial lift wells, well-bays, let down stations, water injection clusters and other infrastructure required to sustain the production capacity of the field, it says.

Adnoc had already announced an investment of Dh1.8 billion ($489 million) to upgrade Bab field, one of its largest onshore producing assets.

The investment will re-energise Adnoc’s first field producing Murban grade crude to sustain long-term crude oil production capacity and reinforces the company’s commitment to maximising value from Abu Dhabi’s vast hydrocarbon resources as it delivers its 2030 smart growth strategy.

Abdulmunim Saif Al Kindy, executive director of Adnoc’s Upstream Directorate, says: “This award follows an extremely competitive and rigorous tender process that ensures that over 75 per cent of the award value will flow into the UAE’s economy, stimulating local economic growth and nurturing new business opportunities for the private sector, in line with the leadership’s wise directives.”

The Bab field, he says, is integral to Adnoc’s strategy to create a more profitable upstream business. Its expansion comes two years after Adnoc Onshore awarded a contract to increase the capacity of the field from 420,000 to 450,000 bpd by 2020.