DUBAI: Abu Dhabi National Oil Company awarded a $744 million (Dh2.73 billion) contract to the UAE’s National Petroleum Construction Company to fully develop the offshore Belbazem block.
Adnoc subsidiary Al Yasat, which is the state-owned oil company’s joint venture with China National Petroleum Corporation, awarded the engineering, procurement and construction contract, report agencies.The Belbazem block is being developed to reach a production capacity of 45,000 barrels per day of light crude, with the first barrel of oil expected in 2023. The development is part of Adnoc’s efforts to raise its production capacity to 5 million bpd by 2030.
The offshore block consists of three fields –Belbazem, Umm Al Salsal and Umm Al Dholou.
Adnoc has the majority 60 per cent stake in Al Yasat, with the remainder held by China’s CNPC.
“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,” said Yaser Almazrouei, Adnoc upstream executive director said in a statement on Tuesday.
Around 65 per cent of the award value will flow back to the UAE, according to Adnoc’s in-country value programme.
The Belbazem block, which lies 120 kilometres northwest of Abu Dhabi city, is also expected to produce 27 million cubic feet per day of associated gas by 2023.Ahead of the EPC award, Al Yasat undertook a front-end engineering and design competition in order to optimise the cost and time efficiencies of the project.
The company was able to reduce the tender time by up to 12 months after eliminating the need for technical bids. Al Yasat Petroleum saved about $190m in capital expenditure with the shortening of the tendering process, Adnoc said.