Jun 10 | 2021
(MENA) Construction of Three Offshore Well Head Towers
Energy group Al Yasat Petroleum has awarded a contract to develop the Belbazem Offshore Block in Abu Dhabi to the emirate's National Petroleum Construction Co., or NPCC.
The deal, valued at US$744 million, will enable Belbazem to deliver crude oil production capacity of 45,000 barrels per day when it comes online in 2023.
“We are very pleased to commence the full field development of the Belbazem Offshore Block, together with our strategic partner CNPC. This award demonstrates our commitment to maximize value from all of Abu Dhabi’s hydrocarbon resources for the benefit of the UAE and our partners.,” Yaser Saeed Almazrouei, upstream executive director of the Abu Dhabi National Oil Co., or ADNOC.
The scope of the contract covers engineering, procurement, construction, and commissioning activities for offshore facilities and will build on previous front-end engineering design or FEED.
“The FEED competition and EPC award for the Belbazem Offshore Block highlight Al Yasat’s focus on costs and competitive approach to ensure we can commercially develop our concession areas and deliver long-term and sustainable value, said Shaheen Al Mansoori, acting CEO of Al Yasat. The project will help “unlock value” from comparatively smaller fields that “require a lean operating model” to optimize their production and value potential, he added.
Development will include three offshore well head towers, one in each of the block’s three fields, interconnecting subsea pipelines, and cables to Zirku Island, located about 60 kilometers from Belbazem field.
NPCC will construct new greenfield facilities for water injection, gas compression, water treatment, and associated utilities alongside brownfield works for tie-in to existing facilities at Zirku Island. Located about 120 kilometers northwest of Abu Dhabi, the field is a central part of Abu Dhabi’s plans to expand oil production to 5 million barrels per day by 2030.
“NPCC was selected after a rigorous tender process that ensures it will deploy best-in-class technology and expertise to execute this strategic project, with a substantial part of the award value flowing back into the UAE’s economy to stimulate local economic growth, in line with the wise directives of our Leadership,” Almazrouei said.
Al Yasat Petroleum is a joint venture between ADNOC and China National Petroleum Corp., with ADNOC holding 60 percent and CNPC holding a 40 percent stake. ADNOC is owned and operated by the government of the UAE and controls some of the largest oil and gas reserves in the world.
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