Carbon dioxide injection to boost Adma-Opco oil fields

Abu Dhabi Marine Operating Company (Adma-Opco) is Abu Dhabi National Oil Company (ADNOC)‘s subsidiary to explore and produce oil and gas from the offshore areas of the Emirate of Abu Dhabi, UAE.

If the Abu Dhabi Emirate is rich of oil reserves, it has always been short of gas.

This lack of gas is partly compensated by the Dolphin pipeline carrying natural gas from Qatar to Abu Dhabi then to export.

In addition, Adnoc is planning to boost oil production to 3.5 million b/d by 2017, from actual 2.8 million b/d.

In this context, Adnoc is for years looking for solutions to reduce the oil industry consumption of 5 billion cf/d of natural gas to compensate the depletion of the maturing oil fields.

This solution may come from injecting carbon dioxide instead of natural gas into its offshore fields for enhance oil recovery (EOR).

Abu Dhabi Co. for Onshore Oil Operations (ADCO), the ADNOC‘s subsidiary for onshore operations has completed a pilot project onshore to inject 1.2 million cf/d  carbone dioxide into the Rumaitha field.

First results are very encouraging to the point that ADCO is now planning a further four to five pilot onshore projects for 2013 and 2014.

This expansion on the Rumaitha field would require 20 or 30 times more CO² and would increase the oil recovery by10 percent.

At ADCO level the use of the CO2 injection to all the onshore fields would add 7 billion b/d, twice more than the actual crude oil production.

This overall expansion of CO² injection to all ADCO oil fields would require the production of 400 million to 500 million cf/d carbon dioxide.

At that point, in 2020 the question comes to find sustainable source of CO² to support such an EOR  program.

From financial perspective, the current production costs are about:

 - $5 a barrel for the carbon capture

 - $20 a barrel all costs included with the CO2 injection.

Compared with oil barrel price staying steadily around $100, the pilot projects are proving that the carbon capture and injection is wealthy enough onshore to be tested offshore. 

Masdar to provide ADNOC Carbon Capture expertise

Masdar Carbon, one of the five integrated units of Masdar, and ADNOC have decided to extend their agreement for closer co-operation in carbon capture usage and storage (CCUS).

One plan under consideration is to build a plant next to Emirates Steel Industries PJSC (Emirates Steel) to capture 800,000 t/y of CO².

From the significant progress made on the EOR pilot projects after two years in operation, ADNOC and Masdar have decided to move to the next step in drafting Head of Terms (HoT) to govern future detailed delivery agreements.

 A CO₂ injection pilot project on enhanced oil recovery (EOR) at an onshore field completed two years last November and the wealth of data collected over the period has encouraged the two partners to go ahead with the Emirates Steel project.

Masdar intends to capture nearly 800,000 t/y carbon dioxide-rich stream, prior to emission from the Emirates Steel Phase 1 and Phase 2 lines.

The CO₂ feedstock from the Emirates Steel plant, containing 90% CO₂, will be transferred to a common compression and dehydration facility at the project site in Mussafah.

The CO₂ feedstock will be compressed into dense phase; delivering a CO₂ feedstock of over 98% purity, through 50km of the pipeline network, to be injected in ADCO onshore oil field.

On the side of Emirates Steel, the partnership with Masdar would contribute to produce steel with lower carbon footprint through capturing carbon dioxide on a mass scale.

Successful carbon capture projects are anticipated to have a positive long-term economic impact on Abu Dhabi including economic growth, job creation and the development and export of CCS-related technology know-how.

Masdar in brief

Masdar is a wholly owned subsidiary of the Abu Dhabi Government-owned Mubadala Development Company, a catalyst for the economic diversification of the Emirate.

Established in 2006, Masdar is a commercially driven enterprise that operates to reach the broad boundaries of the renewable energy and sustainable technologies industry – there by giving it the necessary scope to meet these challenges. 

Masdar drives clean fossil fuel energy and energy efficiency to monetize carbon dioxide emission reductions.

Masdar Carbon provides technical assistance, project management, carbon trading expertise in oil and gas and power sectors in Middle East, Africa and Asia.

Masdar leads global advanced technologies, value chain applications and deployment strategies for clean energy and CCS.

Through this carbon capture and injection for enhanced oil recovery, ADNOC, Masdar and Emirates Steel are building up their respective Market Leadership and are proving how technology in the oil or steel industry can also cope with environmental benefits.

For more information and data about oil and gas and petrochemical projects go to Project Smart Explorer

Adma-Opco to award $1.1 billion process packages at year end 

The Umm al Lulu and Satah al Rasboot (Sarb) offshore oil and gas fields are part of Abu Dhabi National Oil Company’s (ADNOC) program to boost its oil production in order to meet its 1.75 million b/d quota targeted within OPEC on 2017.

As offshore fields, ADNOC‘s subsidiary Abu Dhabi Marine Operating Company (Adma-Opco) is in charge of the development of these fields.

In 2010, Adma-Opco had awarded the front end engineering and design (FEED) contracts for the  to Fluor for both Umm al Lulu and Satah al Rasboot (Sarb) offshore oil fields.

Fluor Houston and Abu Dhabi offices completed this FEED on mid 2011.

$650 million Umm al Lulu Package 2 under evaluation

Located 30 km northwest Abu Dhabi in the Arabian Gulf, the Umm al Lulu field contains enough reserves to bring Adma-Opco expectations to 100,000 b/d production.

Because of its large size, Adma-Opco is planning a development in different phases.

The first phase of Umm al Lulu development includes:

 - Six wellhead towers

 - Oil processing facilities

 - Infield subsea pipeline

 - Living quarter

 - Export pipeline to Zirku Island

Adma-Opco estimated the capital expenditure for Umm al Lulu Package 2 to $ 650 million.

The technical bids for the engineering, procurement and construction (EPC) contract of the Umm al Lulu package 2 have been submitted in July by:

 - Daewoo Shipbuilding & Marine Engineering Company (DSME) from South Korea

 - Hyundai Heavy Industries (HHI) from South Korea

 - Saipem from Italy

 - Samsung Engineering from South Korea

 - Technip from France

The commercial bids are expected in September.

Adma-Opco is planning the completion of the Umm al Lulu oil field offshore project by 2016.

Satah al Rasboot (Sarb) Package 4 estimated to $500 million

For the development of the Satah al Rasboot (Sard) oi field, Adma-Opco selected the construction of two artificial islands, Sarb 1 and Sarb 2, as an alternative to steel offshore platforms.

The Sarb artificial islands have been shaped as falcon and are currently under construction 120 km to the northwest coast of Abu Dhabi.

Adma-Opco scheduled to complete the artificial islands construction by end 2012.

Adma-Opco is planning to drill 44 wells from Sarb1 and 42 wells from Sarb2. 

The Sarb production is expected to reach 100,000 b/d of crude oil.

No separation will be introduced to the artificial islands, a combined oil and gas pipeline option has been adopted with two 26 inch combined fully rated oil and gas pipelines, one from each island (SARB 1 & SARB 2), to Zirku Island for processing, storage and export.

An option to export crude through Jabbel Al Dhanna is being studied.

This facility will also handle the Umm al Lulu production of 100,000 b/d in addition to the gas and water injection requirement for Sarb Field.

The capital expenditure for the EPC Package 4 covering the main processing facilitiesof the Sarb oil field development is estimated around $500 million and should be awarded among the following bidders:

 - Daewoo Shipbuilding & Marine Engineering Company (DSME) from South Korea

 - Hyundai Heavy Industries (HHI) from South Korea

 - Saipem from Italy

 - Samsung Engineering from South Korea

ADNOC gave the highest priority to Adma-Opco Satah Al Rasboot (Sarb) project in targeting the completion by 2016.

Adma-Opco in brief

Abu Dhabi Marine Operating Company (Adma-Opco) is a subsidiary of the Abu Dhabi National Oil Company (ADNOC) with share interest split between:

 - ADNOC, representing the Government of Abu Dhabi, with 60%

 - BP 14 2/3 %

 - Total 13 1/3 %

 - JODCO 12%.

Within ADNOC organization, ADMA-OPCO is in charge to develop the offshore oil and gas exploration and production.

Adma-Opco started operations in the 1950′s and came into being as a locally incorporated company on 3rd July 1977.

Adma-Opco main assets are based on the two major oil fields, Umm Shaif and Zakum, from which crude oil is transferred to Das Island for processing, storage and export.

In 1962, the first crude shipment, which came from Umm Shaif, was exported from Abu Dhabi through Das Island. 

Over the years, ADMA-OPCO has gone through an aggressive process of change and is committed to the development of new fields including Satah Al Razboot (SARB), NASR and Umm al Lulu fields.

With the processing packages to be awarded to EPC in 2012 for the Umm al Lulu and Satah al Rasboot (Sarb) offshore oil fields development, Adma-Opco is will meet its oil production target by 2017.

For more information and data about oil and gas and petrochemical projects go to Project Smart Explorer

Zadco to extend Zirku oil processing and gas treatment

The Abu Dhabi company Zakum Development Company Oil Company (Zadco) is a joint venture between the national oil company (NOC) Abu Dhabi National Oil Company (ADNOC) and the international oil companies (IOCs) ExxonMobil and the Japan Oil Development Company (JODCO).

Zadco was created in 1977 to develop the Upper Zakum (UZ) field with actual working interest between the patners:

 - ADNOC 60%

 - ExxonMobil 28%

 - JODCO 12%

Upper Zakum is the forth largest field in the world and the second biggest in the Gulf.

Located offshore 64 kilometers northwestern Abu Dhabi, Upper Zakum covers 1,200 square kilometers required over the years the construction of multiple platforms and heavy infrastructure for the exploration and production of its oil and gas reserves.

In this scheme, the Zirku island, located 140 kilometers distance from Abu Dhabi Emirate‘s coast appeared as the perfect position to build oil and gas processing units, storage and export facilities.

In the meantime Zadco developed in the same area the Umm Al Dalkh and Satah fields.

These oil fields were also connected to Zirku island for oil and gas processing, storage and export employing about 1100 people.

In order to meet Abu Dhabi‘s allocated OPEC quotas for 2017, Zadco is planning to increase Upper Zakum production capacity from current 500,000 b/d to 750,000 b/d.

In this context, Zadco is working on the Zirku Facilities Capacity Enhancement Project.

This Zirku island processing capacity expansion is to meet with the additional oil and gas production to come from the Upper Zakum further development project called UZ750 by reference to the 2017 production target. 

With Zirku Facilities Capacity Enhancement Project, Zadco will add:

 - Two oil processing trains, the 5th and a 6th trains

 - Gas central processing facilities, called Zirku Gas Treatment Plant (GPT)

Zadco is planning to increase capacity from current 580,000 b/d to 1 million b/d.

In 2011, Zadco awarded Foster Wheeler a pre-FEED contract to perform an availability and reliability study on Zirku island oil and gas processing facilities.

Based on site surveys, Foster Wheeler provided Zadco with recommendations to:

 - Increase production from actual and future oil and gas processing units

 - Identify options for potential expansion

 - Propose debottlenecking initiatives

 - Perform availability and reliability master plan for existing and future facilities

Zirku island oil and gas processing facilities are actually running with four oil processing trains, three in operations and one in stand by.

The planned expansion is to add a 5th and 6th oil processing trains to nearly double production.

Foster Wheeler completed Zadco Zirku island expansion pre-FEED 

The conclusions of Foster Wheeler’s pre-FEED work are the basis for the front end engineering and design (FEED) contract to be tendered by Zadco.

Then the FEED contract will also include:

 - Basic design for the oil processing trains and gas treatment plant (GTP)

 - Tie-in of the new capacities within the existing facilities

 - Safety review to perform modifications while running in operation

 -Costs estimates

 - Planning for engineering, procurement and construction (EPC) work

To complete the Zirku Facilities Capacity Enhancement Project in 2017,  in line with Upper Zakum 750 project field development project, Zadco is planning to send the Call for Tender of this FEED work on the coming weeks in order to award the FEED contract on second quarter 2013 and the engineering, procurement and construction (EPC) contract on early 2015.

For more information and data about oil and gas and petrochemical projects go to Project Smart Explorer

Abu Dhabi Company for Onshore Oil  Operations

The Abu Dhabi Company for Onshore Oil Operations (ADCO) was established on 2nd December 1971 in Abu Dhabi, the largest Emirates from the United Arab Emirates (UAE).

ADCO was created by the Abu Dhabi National Oil Company (ADNOC) to explore and operate the onshore and shallow coastal water of the Emirate of Abu Dhabi.

ADNOC is the national oil company held by the Abu Dhabi Government to manage all the oil and gas assets of the Emirate, upstream, midstream and downstream.

First oil and gas concessions were signed in Abu Dhabi in 1939 with Petroleum Development (Trucial Coast) Ltd, but the exploration started only in 1950 with the first discovery made in the actual Bab field.

ADCO was incorporated as a joint venture on 1978 and has been responsible, since February 1979, for onshore Abu Dhabi operations in the concession area covering more than 21,000 square kilometers.

In ADCO, ADNOC is leading the joint venture where the working interests are shared between:

 - ADNOC 60% is the operator

 - BP 9.5%

 - ExxonMobil 9.5%

 - Shell 9.5%

 - Total 9.5%

 - Partex 2%

With its onshore oil and gas fields mandate, ADCO explores and develops six oil and associated gas fields such as Asab, Bab, Buhasa, Sahil, Shah, North-East Bab (NEB) with Dabbiya, Rumaitha and Shanayel, 

With these six fields, ADCO  delivers 65% of the UAE total crude oil production of 2.5 million barrel of oil equivalent (boe) per day.

Under the govern of its stakeholders, ADCO defines its mission to explore, develop and produce hydrocarbons within its concession with the:

 - Maximum efficiency and safety

 - Optimum cost

 - Minimum impact on the environment

 - Continuous improvement

 - Highest standards of honesty and integrity.

ADCO Key Figures

As a national oil company ADCO does not published results.

In 2012, ADCO produces 1.4 million barrel of oil equivalent (boe) per day.

ADCO Projects and Business Highlights

Among the key projects ADCO is working on:

 - NEB Full Field Development including the deployment of CO2 injection techniques tested on the Rumaitha pilot case to reach 230,000 b/d production in 2016.

 - Nitrogen Gas Injection (NGI) in Thamana F

 - Bab Gas Compression Project phase 2 to boost production from the Bab field to 2.5 billion cf/d of natural gas

  – Asab Full Field Development to increase production from 290,000b/d to 340,000 b/d of crude oil.

 With the support of its actual partners BP, ExxonMobil, Partex, Shell, Total or potential new ones, OMV, Statoil and Wintershall, ADCO will have to invest massively to overcome two challenges: increase crude oil production to meet OPEC quotas, and find gas wherever possible to secure Abu Dhabi independence. 

For more information and data about oil and gas and petrochemical projects go to Project Smart Explorer

We Refine Right

The Abu Dhabi Oil Refining Company, so called TAKREER, is the operational entity of the Abu Dhabi National Oil Company (ADNOC) in charge of the refining business.

Until 1999, the downstream activities were left as a branch within ADNOC, but with the development of this sector in Abu Dhabi and major projects to be launched in the years 2000s, ADNOC decided to separate it and establish a dedicated entity to handle it.

Under TAKREER umbrella, ADNOC transfered all the activities related to:

 - Crude oil refining

 - Condensate transformation

 - Supply of petroleum products

 - Sulfur treatment and granulation for export

TAKREER key assets rely on the Abu Dhabi Refinery and the Ruwais refinery.

As the first refinery in the United Arab Emirates (UAE), the Abu Dhabi Refinery started operations in 1976 with a capacity of 15,000 b/d and a capital expenditure of $45 million.

In 1982, ADNOC proceeded to a first expansion to 60,000 b/d capacity.

In 1990, the Umm al Nar salt and chlorine plant was merged with the Abu Dhabi Refinery to become the ADNOC Abu Dhabi Refinery and Chlorine Division.

In 1992, ADNOC decided a new expansion to 85,000 b/d and the upgrade of the process with desulfurization and sulfur handling units.

The Abu Dhabi Refinery holds 500,000 cubic meter storage capacities connected to a marine terminal for loading and unloading tankers.

The Ruwais refinery was commissioned few years later in 1982 in the western region of the Emirate, 240 kilometers west of Abu Dhabi City with a capacity of 120,000 b/d.

The purpose was to create the Ruwais Industrial complex around this refinery.

In 1985, ADNOC invested in a first expansion of 27,000 b/d, and in 1986 the refinery was merged with the Ruwais General Utilities Plant for the supply of power and water.

In 1991, ADNOC added the sulfur handling and granulation units to become one of the largest in the world.

In 2002, TAKREER commissioned two condensate processing trains of 140,000 b/d, also among the largest in the world.

Today, the Ruwais Refinery manages a farm of 91 tanks with a storage capacity of 3 million cubic meters linked to a marine terminal.

Now integrated in the refinery, the Ruwais utilities run a 650 MW gas-fired power plant and a 60,000 cubic meters per day desalination facility. 

Today, the Abu Dhabi Refinery and the Ruwais Refinery have a capacity of 460,000 b/d (23 million t/y) of crude oil and condensate.

TAKREER Key Figures

As part of a national oil and non-listed company, TAKREER does not publish figures.

TAKREER Projects and Business Highlights

Abu Dhabi is targeting to increase its crude oil production to meet its OPEC quotas 2018.

In the same time Abu Dhabi strategy is defined to reduce its reliance on this crude oil market in developing the downstream activities.

In parallel, Abu Dhabi is running short of natural gas meaning that the development of the downstream activities including the petrochemical sector will be mainly based on crude oil.

In this context, TAKREER will take a leading role in ADNOC strategy for growth, value creation and employement.

As a first step of its development, TAKREER awarded in June 2012 a $2.5 billion engineering, procurement and construction (EPC) contract to Samsung Engineering from South Korea for the construction of a carbon black delayed coker (CBDC) at the Ruwais Industrial Complex.

The purpose of this new plant is to produce higher value added products such as synthetic rubber and resins from the crude oil refining and heavy residual oil recycling.

This project will include 12 processing units and 23 infrastructure offsites and utilities.

Planned to start operations in 2015, this carbon black delayed coker project reflects the $10 billion refinery expansion planned in Ruwais Industrial City.

CH2M Hill is working on Adnoc Bab sour gas pre-FEED

BP, ExxonMobil, Korean National Oil Company (KNOC), Shell and Total are the happy few pre-qualified international oil companies to submit offer for the $10 billion development of the Bab sour gas project in joint venture with Abu Dhabi National Oil Company (Adnoc) in the United Arab Emirates (UAE).

Postponed since 2007, the selection of Adnoc‘s partner in this project takes a special dimension as it comes a year ahead a much bigger game with the renewal of the actual allocated concessions for the onshore exploration and production of the Abu Dhabi oil and gas fields for the next 30 years.

The offshore concessions will come for renewal in the same way in 2018.

Bab is part of these sour gas fields in Abu Dhabi with Shah and Hail to contain a high percentage of hydrogen sulphide and carbon dioxide (CO2).

To be developed originally together with Shah, the escalation of the project costs and technical challenges convinced Adnoc to proceed step by step.

In 2008, Adnoc awarded the Shah gas development project to ConocoPhillips.

But in 2010, ConocoPhillips withdrew from the project and was replaced by Occidental Petroleum (Oxy) in 2011.

Shah gas development was already a challenging project with 27% CO2, but Bab sour gas comes now with 50%, about twice more.

In addition, Bab gas field is given to contain less valuable condensate in quantity and in quality that could help the profitability of the investment.

For this reason, Adnoc is looking for partners such as BP, ExxonMobil, Shell or Total with a proven expertise in handling such a complex project with costs well under control.

After UK and South Korea, France courts Abu Dhabi

The engineering company CH2M Hill is currently working on the pre-front end engineering and design (Pre-FEED).

At this Pre-FEED stage, Adnoc is working on two scenario of development, one based on 500 million cubic feet per day (cf/d), one to reach 1 billion cf/d of sour gas.

From the actual estimation, Bab sour gas project should also require $10 billion capital expenditure.

The selected company should form a joint venture with Adnoc where the national oil company should hold 60% stakes while leaving 40% to the winning bidder.

Anticipating on the rules to be enforced with the concessions renewals, the nominated Adnoc‘s partner will be the operator of the concession to develop the Bab sour gas project on the next 30 years supported by a production sharing agreement.

With the nearing deadline, the competition between the companies intensifies involving the Governments of the most motivated countries.

On November 5th 2012, UK Prime Minister David Cameron visited Abu Dhabi with several objectifs including to add BP on the list of the invited companies to participate to the concessions renewal and of course to be considered carefully for Bab Sour gas in respect with BP experience in challenging fields. 

Only two weeks later, on November 21st 2012, a delegation of the South Korean Government paid a visit to Abu Dhabi with the support of the national oil company KNOC to position itself on new fields to be developed and secure minimum crude oil supply.

Following this visit Adnoc announced to re-tender the $4 billion Upper Zakum EPC2 package that might have escaped to South Korean contractors at that time.

In January 15th 2013, French President François Hollande attended the World Future Energy Summit in Abu Dhabi to promote Total as the most reliable partner for the onshore concessions and provider of technology for Bab sour gas.

With 9.5% shares in Abu Dhabi Company for Onshore Operations (Adco) Total benefits from a long standing experience in Abu Dhabi with additional shares in Abu Dhabi Marine Operation Company (Adma-Opco) and Abu Dhabi Gas Industries (Gasco).

So far the development of the gas fields, especially sour gas, in the UAE was not a priority but with the economical growth calling for more gas-fired power plants, gas injection to boost oil production and the development of the petrochemical sector, gas has become a critical resource in Abu Dhabi giving Gasco a leading role in the UAE.

In this context, the competition between BP, ExxonMobil, KNOC, Shell and Total should intensify on Bab sour gas until Adnoc makes the decision on first half 2013.

For more information and data about oil and gas and petrochemical projects go to Project Smart Explorer

Technip to complete FEED work for onshore NEB 3

The national Abu Dhabi Company for Onshore Operations (ADCO) is making significant progress in the North East Bab field with the contracts to be awarded soon for the development of the third phase called NEB 3.

ADCO is the joint venture between Abu Dhabi National Oil Company (ADNOC) and international partners, BP, ExxonMobil, Shell, Total and Partex to develop onshore fields in the Emirate.

In the ADCO joint venture, ADNOC and its partners share the working interests as following:

 - ADNOC 60% is the operator

 - BP 9.5%

 - ExxonMobil 9.5%

 - Shell 9.5%

 - Total 9.5%

 - Partex 2%

The North East Bab (NEB) field is located 31 kilometers south west of Abu Dhabi City in the United Arab Emirates and covers 1,400 square kilometers.

As ADCO‘s largest asset, NEB is comprising four fields, Al-Dhabbiya, Rumaitha and Shanayel already in production and Jumaylah still untapped.

NEB is lying across Abu Dhabi coast line so that Rumaitha and Shamayel are onshore while Al-Dhabbiya is located 30 kilometers north mostly offshore in shallow water.

Because of its coastal position, NEB is environmentally sensitive with mangroves, coral reef, salt marshes and low level islands hosting unique and protected wildlife species.

In addition this area counts among the rare archaeological sites of the Emirate. 

For these reasons Abu Dhabi is paying the greatest attention that any oil and gas field development in NEB is designed and executed in entire respect with these environmental constraints giving the advantage to engineering companies familiar with the place and able to provide solutions to reduce the environmental foot print of the industrial activities during the projects phases and later when running into operations.

The third phase of North East Bad (NEB 3) development belongs to ADCO strategic plan to increase its production of crude oil from the current 1.4 million barrels per day (b/d) to 1.8 million b/d in 2018.

With Zakum Development Company (ZADCO) due to reach 1.7 million b/d by then, Abu Dhabi is targeting 3.5 million b/d in 2018.

This target is part of the quotas given by the OPEC organization to each producing country in order to ensure to continue to represent 40% of the global production by 2018.

This stake of 40% is the percentage that OPEC is continuously targeting  to maintain its influence on the crude oil global market.

In this perspective ADCO is planning to spend $1 billion capital expenditure in the NEB 3 project to add 110,000 b/d of crude oil production.

ADCO awarded PMC contract to Mott MacDonald

This North East Bab third phase project includes two packages:

 - Onshore, the development of the Rumaitha and Shamayel fields

 - Offshore, the development of the Al-Dabbiya

In the previous phases of NEB development Technip in joint venture with the  local National Petroleum Construction Company (NPCC) performed the engineering, procurement and construction (EPC) contracts while CH2M HILL was providing project management consultancy.

Currently Technip is working on the front end engineering and design (FEED) of the onshore part of the NEB 3 project.

ADCO is expecting Technip to complete this FEED by the end of April in order to organize the call for tender of the EPC contract for this onshore part on the second half of 2013.

Because of its complexity, the offshore Al-Dabbiya part of the NEB 3 project is phased up in a different schedule.

ADCO is currently evaluating the offers for the FEED work of the offshore package of NEB 3 in order to make a decision in April 2013 and to award the EPC contract by 2014.

In 2012, ADCO selected the UK-based Mott MacDonald to provide the project management consultancy services of the NEB 3 project, onshore and offshore.

According to the terms of its contract Mott MacDonald will support ADNOC and its partners BP, ExxonMobil, Shell, Total and Partex, for the FEED and the EPC work of ADCO North East Bab third phase (NEB 3) project.

For more information and data about oil and gas and petrochemical projects go to Project Smart Explorer

Zadco to prepare call for tender on Umm al-Dalkh

After awarding Upper Zakum EPC-2 contract to Petrofac, the Abu Dhabi Zakum Development Company (ZADCO) is preparing the invitation to bid (ITB) for the development of Umm al-Dalkh, offshore Abu Dhabi in the United Arab Emirates.

On April 11th, 2013,  ZADCO awarded the engineering, procurement and construction (EPC) contract for the second package (EPC-2) of the Upper Zakum (UZ750) field development to a consortium of Petrofac Emirates and Daewoo Shipbuilding and Marine Engineering (DSME) from South Korea.

In this consortium Petrofac Emirates results from a joint venture between Petrofac from UK and the local Mubadala Petroleum (Mubadala) company.

Signed on the base of $3.79 billion capital expenditure, this EPC contract will provide Petrofac Emirates with $2.9 billion stake.

In February 2013, Petrofac had been given as the lowest bidder of a rebid organized for this package Upper Zakum EPC-2.

Since then ZADCO and its partners took some time to analyze in detail each offer as the top three bidders were so close.

Established in November 1977 to develop and operate the offshore field of Upper Zakum (UZ), ZADCO is a joint venture between:

 - Abu Dhabi National Oil Company (ADNOC) 60%, the operator

 - ExxonMobil Abu Dhabi Offshore Petroleum Company Ltd. (EMAD) 28% 

 - Japan Oil Development Company Ltd. (Jodco) 12%.

Located 84 kilometers northwest offshore Abu Dhabi and 56 kilometers from the export terminal on Zirku Island, Upper Zakum is the second largest crude oil field in the Gulf and the fourth one in the world.

In the same offshore area ly the fields of Umm al-Dalkh and Satah.

Originally developed by the Umm al-Dalkh Development Company (UDECO), ADNOC decided in 1988 to merge this company with ZADCO to unitize the development process and the means of production.

Tebodin completed the FEED on Umm al-Dalkh EOR

Umm al-Dalkh is covering 168 square kilometers only 25 kilometers distance from Abu Dhabi shore.

Lying by 2,310 meters, the Umm al-Dalkh field is composed of two reservoirs.

Discovered in 1969, Umm al-Dalkh has been developed in connection with Upper Zakum, 66 kilometers further north on the way to the export terminal based on the Zirku Island.

Currently, the crude oil extracted from Umm al-Dalkh is transported to Upper Zakum through a 14-inch pipeline where both fields production is carried out to Zirku Island by a 42-inch pipeline.

In 2010, the Dutch engineering company Tebodin won a first contract to enhance the production of Umm al-Dalkh.

According to this contract, Tebodin provided engineering, procurement, construction management (EPCM) services to:

 - Modify existing facilities

 - Add a new control system

- Install electrical submersible pumps

 - Electrical panels

 - Subsea power supply cable from the central platform

Then Tebodin was awarded the front end engineering and design (FEED) for another enhanced oil recovery (EOR) expansion including:

 - Gas injection

 - Water cuts handling.

With this last project, ZADCO is targeting to increase capacity from the current 13,000 B:d to 20,000 b/d.

Tebodin completed the FEED so that ZADCO is now preparing the invitation to bid for the engineering, procurement and construction (EPC) contract.

ZADCO is expecting to receive the technical and commercial offers on the third quarter 2013 in order to make the final investment decision (FID) and award the EPC contract before the end of the year.

For more information and data about oil and gas and petrochemical projects go to Project Smart Explorer

ADCO evaluate offers for NEB-3 Onshore EPC contract

The United Arab Emirates (UAE) Abu Dhabi Company for Onshore Operations (ADCO) is currently evaluating the offers for the third phase of the North East Bab (NEB-3) project onshore Abu Dhabi.

As the other projects Upper Zakum, Umm Al-Lulu or Al-Nasr, NEB-3 is part of the giant upstream projects in Abu Dhabi to help the UAE to meet their targeted quotas of production in 2018.

In line with the other producing countries sitting at the OPEC, the goal is for each member to increase its production of crude oil so that the OPEC countries together can sustain their 40% market share globally.

In that perspective, Abu Dhabi is expected to reach 3.5 million barrels per day (b/d) in 2018.

Considering that the crude oil production increase must begin with compensating the natural decline of the maturing fields, such a goal represents a major effort for the producing countries.

All the companies of the Abu Dhabi National Oil Company (ADNOC) are involved in this program where ADCO is expected to contribute in ramping up its current production of 1.4 million b/d to 1.8 million b/d by 2018.

Within ADCO assets portfolio,  the third phase of North East Bab is expected to bring 110,000 b/d additional output.

Located less than 50 kilometers southwest of Abu Dhabi City, NEB lies along the shore line with onshore and offshore oil and gas fields.

Onshore, NEB includes the Rumaitha and Shanayel oil fields.

Offshore, NEB relies on the Al-Dabbiya oil field.

In between these fields, the coast line area is considered by Abu Dhabi Authorities are environmental sensitive,.

ADCO to phase up Onshore – Offshore NEB-3 project

Since the development of the onshore part and offshore portion of NEB-3 had to be split anyway, ADCO decided to phase up the project and the organize the call for tender separately for the onshore and offshore packages of the NEB-3 project.

For the development of Al-Dabbiya as part of NEB-3 Offshore project, ADCO is still evaluating offers for the front end engineering and design (FEED) work, while Technip completed the FEED for the Rumaitah and Shanayel onshore fields development project.

In the meantime ADCO awarded the project management consultancy (PMC) contract to Mott MacDonald in 2012.

From the 13 companies qualified by ADCO for Onshore NEB-3 engineering, procurement and construction (EPC) contract, 10 submitted a technical and commercial offer.

ADCO is currently evaluating these offers in order to make a decision at the end of 2013 or early 2014.

If ADCO is still willing to reach its production goal by 2018, it will have to move the NEB-3 project into the execution phase without any delay.

For more information and data about oil and gas and petrochemical projects go to Project Smart Explorer

BP, ExxonMobil, Shell, Total in concessions race

In 2013, the historical international oil companies (IOCs) BP from UK, ExxonMobil from USA, Statoil from Norway, Partex from Portugal and Total from France have been racing  to at least preserve and hopefully extend in 2014 their respective concessions rights in the onshore fields of Abu Dhabi shared in joint venture with the national Abu Dhabi National Oil Company (ADNOC) in the United Arabe Emirates (UAE).

Abu Dhabi is by far the oil and gas richest Emirate within the seven emirates community of the UAE.

With proven reserves of 98 billion barrels of crude oil and 214 trillion cubic feet (tcf) of natural gas, the UAE stand in the fifth position for the oil and forth position for the gas in the Middle East by proven reserves.

The quality of these reserves and the stability of the country, the second largest economy in the region, put its concession under the spot lights for all the oil and gas companies.

These 75 years onshore concessions will end up in January 2014, so that ADNOC is currently evaluating the bids submitted by the invited companies to take over the new concessions.

The new concessions will take affect on January 2015.

The bidders had the options to call for 5% or 10% share while ADNOC should retain at least 60%.

Most of the future developments will be related to mature fields or high sulfur content gas and unconventional oil and gas reserves. 

Therefore the expertise and technology will count on ADNOC decision, beyond the financial and political aspects.

So new companies such as Statoil or Wintershall should take their stake of the cake beside the re-elected majors among which, BP, ExxonMobil, Shell and Total should stand up again.

ADCO evaluate offers for NEB-3 Onshore EPC contract

The United Arab Emirates (UAE) Abu Dhabi Company for Onshore Operations (ADCO) is currently evaluating the offers for the third phase of the North East Bab (NEB-3) project onshore Abu Dhabi.

>>> More Information

 IPIC qualified bidders for Fujairah Refinery Phase-1

The Abu Dhabi-based International Petroleum Investment Company (IPIC) is preparing the call for tender for the engineering, procurement and construction (EPC) contractof the Fujairah Refinery Phase-1 in the United Arab Emirates (UAE).

>>> More Information 

ADCO to invest $1 billion in Shahil, Qusahwira, Mender

Abu Dhabi Company for Onshore Oil Operations (ADCO) is activating the South East Full Field Development (FFD) project related to Asab Sahil, Qusahwira and Mender crude oil fields in the southeast of the United Arab Emirates (UAE).

>>> More Information

Dana reached agreement with Sharjah Emirate on Zora

The Sharjah-based private company Dana Gas (Dana) managed to reach an agreement with the authorities of the Sharjah and Ajman Emirates in the United Arab Emirates (UAE) regarding the offshore development of the Zora gas  field in the Sharjah Western Offshore concession.

In 2008, Dana was awarded by Sharjah Emirate a 25 years concession agreement to complete the exploration and develop a block of 1,000 square kilometers offshore the west coast of the Emirate.

>>> More Information

For more information and data about oil and gas and petrochemical projects go to Project Smart Explorer

Indorama takes seat in Tacaamol Al-Gharbia Complex

The Thai chemical company Indorama Ventures (Indorama) and the local Abu Dhabi National Chemicals Corporation (ChemaWEyaat) signed an agreement to establish the joint venture Abu Dhabi Chemicals Integration Company (Tacaamol) to design and build the first phase of the Madeenat ChemaWEyaat Al Gharbia (MCAG) project in the Western Region of Abu Dhabi, along the boarder of Saudi Arabia. 

For some years, the Emirates of Abu Dhabi is working to balance its upstream activities with the added value generated by the downstream sector in expanding its petrochemicals capacities.

In 2008, Abu Dhabi Emir established ChemaWEyaat as a joint venture between Abu Dhabi National Oil Company (ADNOC), the Abu Dhabi Investment Council and the International Petroleum Investment Company (IPIC) in order to channelize the best resources from the upstream side toward the petrochemical sector.

At that time Abu Dhabi was targeting to invest up to $25 billion capital expenditure in the giant Madeenat ChemaWEyaat Al-Gharbia Master Planning project.

As Tacaamol means integration, Abu Dhabi has conceived the Madeenat ChemaWEyaat Al-Gharbia Master Planning project as an integrated petrochemical complex similar to Sadara in Saudi Arabia.

If integration favors the process optimization and related costs, it also adds complexity in the design and construction pushing forward the expected date of first production.

So ADNOC and IPIC decided to split the Madeenat ChemaWEyaat Al-Gharbia Master Planning project in three phases.

As a first phase, the Madeenat ChemaWEyaat Al-Gharbia (MCAG) project should require $10 billion capital expenditure.

This first phase MCAG will itself be also phased up in a manageable way and in respect with the different partnerships required by ChemaWEyaat to licence the best processes with international chemical companies.

In that respect the agreement signed between Indorama and ChemaWEyaat to create the joint venture Tacaamol is providing the first stone to the MCAG project.

Foster Wheeler won PMC for Tacaamol Aromatics

In this Tacaamol joint venture, ChemaWEyaat and Indorama will share the working interests such as:

 - ChemaWEyaat 51% is the operator

 - Indorama 49%

For this first phase of the MCAG project, ChemaWEyaat and Indorama intends to build through their Tacaamol joint venture an aromatics plant including:

 - 1.4 million tonnes per year (t/y of paraxylene (PX)

 -  500,000 t/y of benzene.

 - Petrochemicals tank farm

 - Export jetty

In 2012, ChemaWEyaat had selected Foster Wheeler to provide the project management consultancy (PMC) services for the MCAG project.

In September 2013, ChemaWEyaat had mandated CH2M Hill to carry out the front end engineering and design (FEED) work of the Madeenat ChemaWEyaat Al-Gharbia project.

With Indorama joint venture, ChemaWEyaat is partnering with a polyester global leader producing PET and PTA all over the world.

ChemaWEyaat and Indorama are planning to invest $1 billion capital expenditure in this Tacaamol Aromatics project as a first phase of the Madeenat ChemaWEyaat Al-Gharbia (MCAG) project to come on stream in 2020.

For more information and data about oil and gas and petrochemical projects go to Project Smart Explorer

Carbon dioxide injection to boost Adma-Opco oil fields

Abu Dhabi Marine Operating Company (Adma-Opco) is Abu Dhabi National Oil Company (ADNOC)‘s subsidiary to explore and produce oil and gas from the offshore areas of the Emirate of Abu Dhabi, UAE.

If the Abu Dhabi Emirate is rich of oil reserves, it has always been short of gas.

This lack of gas is partly compensated by the Dolphin pipeline carrying natural gas from Qatar to Abu Dhabi then to export.

In addition, Adnoc is planning to boost oil production to 3.5 million b/d by 2017, from actual 2.8 million b/d.

In this context, Adnoc is for years looking for solutions to reduce the oil industry consumption of 5 billion cf/d of natural gas to compensate the depletion of the maturing oil fields.

This solution may come from injecting carbon dioxide instead of natural gas into its offshore fields for enhance oil recovery (EOR).

Abu Dhabi Co. for Onshore Oil Operations (ADCO), the ADNOC‘s subsidiary for onshore operations has completed a pilot project onshore to inject 1.2 million cf/d  carbone dioxide into the Rumaitha field.

First results are very encouraging to the point that ADCO is now planning a further four to five pilot onshore projects for 2013 and 2014.

This expansion on the Rumaitha field would require 20 or 30 times more CO² and would increase the oil recovery by10 percent.

At ADCO level the use of the CO2 injection to all the onshore fields would add 7 billion b/d, twice more than the actual crude oil production.

This overall expansion of CO² injection to all ADCO oil fields would require the production of 400 million to 500 million cf/d carbon dioxide.

At that point, in 2020 the question comes to find sustainable source of CO² to support such an EOR  program.

From financial perspective, the current production costs are about:

 – $5 a barrel for the carbon capture

 – $20 a barrel all costs included with the CO2 injection.

Compared with oil barrel price staying steadily around $100, the pilot projects are proving that the carbon capture and injection is wealthy enough onshore to be tested offshore. 

Masdar to provide ADNOC Carbon Capture expertise

Masdar Carbon, one of the five integrated units of Masdar, and ADNOC have decided to extend their agreement for closer co-operation in carbon capture usage and storage (CCUS).

One plan under consideration is to build a plant next to Emirates Steel Industries PJSC (Emirates Steel) to capture 800,000 t/y of CO².

From the significant progress made on the EOR pilot projects after two years in operation, ADNOC and Masdar have decided to move to the next step in drafting Head of Terms (HoT) to govern future detailed delivery agreements.

 A CO₂ injection pilot project on enhanced oil recovery (EOR) at an onshore field completed two years last November and the wealth of data collected over the period has encouraged the two partners to go ahead with the Emirates Steel project.

Masdar intends to capture nearly 800,000 t/y carbon dioxide-rich stream, prior to emission from the Emirates Steel Phase 1 and Phase 2 lines.

The CO₂ feedstock from the Emirates Steel plant, containing 90% CO₂, will be transferred to a common compression and dehydration facility at the project site in Mussafah.

The CO₂ feedstock will be compressed into dense phase; delivering a CO₂ feedstock of over 98% purity, through 50km of the pipeline network, to be injected in ADCO onshore oil field.

On the side of Emirates Steel, the partnership with Masdar would contribute to produce steel with lower carbon footprint through capturing carbon dioxide on a mass scale.

Successful carbon capture projects are anticipated to have a positive long-term economic impact on Abu Dhabi including economic growth, job creation and the development and export of CCS-related technology know-how.

Masdar in brief

Masdar is a wholly owned subsidiary of the Abu Dhabi Government-owned Mubadala Development Company, a catalyst for the economic diversification of the Emirate.

Established in 2006, Masdar is a commercially driven enterprise that operates to reach the broad boundaries of the renewable energy and sustainable technologies industry – there by giving it the necessary scope to meet these challenges. 

Masdar drives clean fossil fuel energy and energy efficiency to monetize carbon dioxide emission reductions.

Masdar Carbon provides technical assistance, project management, carbon trading expertise in oil and gas and power sectors in Middle East, Africa and Asia.

Masdar leads global advanced technologies, value chain applications and deployment strategies for clean energy and CCS.

Through this carbon capture and injection for enhanced oil recovery, ADNOC, Masdar and Emirates Steel are building up their respective Market Leadership and are proving how technology in the oil or steel industry can also cope with environmental benefits.

For more information and data about oil and gas and petrochemical projects go to Project Smart Explorer

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Adma-Opco to award $1.1 billion process packages at year end 

The Umm al Lulu and Satah al Rasboot (Sarb) offshore oil and gas fields are part of Abu Dhabi National Oil Company’s (ADNOC) program to boost its oil production in order to meet its 1.75 million b/d quota targeted within OPEC on 2017.

As offshore fields, ADNOC‘s subsidiary Abu Dhabi Marine Operating Company (Adma-Opco) is in charge of the development of these fields.

In 2010, Adma-Opco had awarded the front end engineering and design (FEED) contracts for the  to Fluor for both Umm al Lulu and Satah al Rasboot (Sarb) offshore oil fields.

Fluor Houston and Abu Dhabi offices completed this FEED on mid 2011.

$650 million Umm al Lulu Package 2 under evaluation

Located 30 km northwest Abu Dhabi in the Arabian Gulf, the Umm al Lulu field contains enough reserves to bring Adma-Opco expectations to 100,000 b/d production.

Because of its large size, Adma-Opco is planning a development in different phases.

The first phase of Umm al Lulu development includes:

 – Six wellhead towers

 – Oil processing facilities

 – Infield subsea pipeline

 – Living quarter

 – Export pipeline to Zirku Island

Adma-Opco estimated the capital expenditure for Umm al Lulu Package 2 to $ 650 million.

The technical bids for the engineering, procurement and construction (EPC) contract of the Umm al Lulu package 2 have been submitted in July by:

 – Daewoo Shipbuilding & Marine Engineering Company (DSME) from South Korea

 – Hyundai Heavy Industries (HHI) from South Korea

 – Saipem from Italy

 – Samsung Engineering from South Korea

 – Technip from France

The commercial bids are expected in September.

Adma-Opco is planning the completion of the Umm al Lulu oil field offshore project by 2016.

Satah al Rasboot (Sarb) Package 4 estimated to $500 million

For the development of the Satah al Rasboot (Sard) oi field, Adma-Opco selected the construction of two artificial islands, Sarb 1 and Sarb 2, as an alternative to steel offshore platforms.

The Sarb artificial islands have been shaped as falcon and are currently under construction 120 km to the northwest coast of Abu Dhabi.

Adma-Opco scheduled to complete the artificial islands construction by end 2012.

Adma-Opco is planning to drill 44 wells from Sarb1 and 42 wells from Sarb2. 

The Sarb production is expected to reach 100,000 b/d of crude oil.

No separation will be introduced to the artificial islands, a combined oil and gas pipeline option has been adopted with two 26 inch combined fully rated oil and gas pipelines, one from each island (SARB 1 & SARB 2), to Zirku Island for processing, storage and export.

An option to export crude through Jabbel Al Dhanna is being studied.

This facility will also handle the Umm al Lulu production of 100,000 b/d in addition to the gas and water injection requirement for Sarb Field.

The capital expenditure for the EPC Package 4 covering the main processing facilitiesof the Sarb oil field development is estimated around $500 million and should be awarded among the following bidders:

 – Daewoo Shipbuilding & Marine Engineering Company (DSME) from South Korea

 – Hyundai Heavy Industries (HHI) from South Korea

 – Saipem from Italy

 – Samsung Engineering from South Korea

ADNOC gave the highest priority to Adma-Opco Satah Al Rasboot (Sarb) project in targeting the completion by 2016.

Adma-Opco in brief

Abu Dhabi Marine Operating Company (Adma-Opco) is a subsidiary of the Abu Dhabi National Oil Company (ADNOC) with share interest split between:

 – ADNOC, representing the Government of Abu Dhabi, with 60%

 – BP 14 2/3 %

 – Total 13 1/3 %

 – JODCO 12%.

Within ADNOC organization, ADMA-OPCO is in charge to develop the offshore oil and gas exploration and production.

Adma-Opco started operations in the 1950′s and came into being as a locally incorporated company on 3rd July 1977.

Adma-Opco main assets are based on the two major oil fields, Umm Shaif and Zakum, from which crude oil is transferred to Das Island for processing, storage and export.

In 1962, the first crude shipment, which came from Umm Shaif, was exported from Abu Dhabi through Das Island. 

Over the years, ADMA-OPCO has gone through an aggressive process of change and is committed to the development of new fields including Satah Al Razboot (SARB), NASR and Umm al Lulu fields.

With the processing packages to be awarded to EPC in 2012 for the Umm al Lulu and Satah al Rasboot (Sarb) offshore oil fields development, Adma-Opco is will meet its oil production target by 2017.

For more information and data about oil and gas and petrochemical projects go to Project Smart Explorer

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Zadco to extend Zirku oil processing and gas treatment

The Abu Dhabi company Zakum Development Company Oil Company (Zadco) is a joint venture between the national oil company (NOC) Abu Dhabi National Oil Company (ADNOC) and the international oil companies (IOCs) ExxonMobil and the Japan Oil Development Company (JODCO).

Zadco was created in 1977 to develop the Upper Zakum (UZ) field with actual working interest between the patners:

 – ADNOC 60%

 – ExxonMobil 28%

 – JODCO 12%

Upper Zakum is the forth largest field in the world and the second biggest in the Gulf.

Located offshore 64 kilometers northwestern Abu Dhabi, Upper Zakum covers 1,200 square kilometers required over the years the construction of multiple platforms and heavy infrastructure for the exploration and production of its oil and gas reserves.

In this scheme, the Zirku island, located 140 kilometers distance from Abu Dhabi Emirate‘s coast appeared as the perfect position to build oil and gas processing units, storage and export facilities.

In the meantime Zadco developed in the same area the Umm Al Dalkh and Satah fields.

These oil fields were also connected to Zirku island for oil and gas processing, storage and export employing about 1100 people.

In order to meet Abu Dhabi‘s allocated OPEC quotas for 2017, Zadco is planning to increase Upper Zakum production capacity from current 500,000 b/d to 750,000 b/d.

In this context, Zadco is working on the Zirku Facilities Capacity Enhancement Project.

This Zirku island processing capacity expansion is to meet with the additional oil and gas production to come from the Upper Zakum further development project called UZ750 by reference to the 2017 production target. 

With Zirku Facilities Capacity Enhancement Project, Zadco will add:

 – Two oil processing trains, the 5th and a 6th trains

 – Gas central processing facilities, called Zirku Gas Treatment Plant (GPT)

Zadco is planning to increase capacity from current 580,000 b/d to 1 million b/d.

In 2011, Zadco awarded Foster Wheeler a pre-FEED contract to perform an availability and reliability study on Zirku island oil and gas processing facilities.

Based on site surveys, Foster Wheeler provided Zadco with recommendations to:

 – Increase production from actual and future oil and gas processing units

 – Identify options for potential expansion

 – Propose debottlenecking initiatives

 – Perform availability and reliability master plan for existing and future facilities

Zirku island oil and gas processing facilities are actually running with four oil processing trains, three in operations and one in stand by.

The planned expansion is to add a 5th and 6th oil processing trains to nearly double production.

Foster Wheeler completed Zadco Zirku island expansion pre-FEED 

The conclusions of Foster Wheeler’s pre-FEED work are the basis for the front end engineering and design (FEED) contract to be tendered by Zadco.

Then the FEED contract will also include:

 – Basic design for the oil processing trains and gas treatment plant (GTP)

 – Tie-in of the new capacities within the existing facilities

 – Safety review to perform modifications while running in operation

 -Costs estimates

 – Planning for engineering, procurement and construction (EPC) work

To complete the Zirku Facilities Capacity Enhancement Project in 2017,  in line with Upper Zakum 750 project field development project, Zadco is planning to send the Call for Tender of this FEED work on the coming weeks in order to award the FEED contract on second quarter 2013 and the engineering, procurement and construction (EPC) contract on early 2015.

For more information and data about oil and gas and petrochemical projects go to Project Smart Explorer

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Abu Dhabi Company for Onshore Oil  Operations

The Abu Dhabi Company for Onshore Oil Operations (ADCO) was established on 2nd December 1971 in Abu Dhabi, the largest Emirates from the United Arab Emirates (UAE).

ADCO was created by the Abu Dhabi National Oil Company (ADNOC) to explore and operate the onshore and shallow coastal water of the Emirate of Abu Dhabi.

ADNOC is the national oil company held by the Abu Dhabi Government to manage all the oil and gas assets of the Emirate, upstream, midstream and downstream.

First oil and gas concessions were signed in Abu Dhabi in 1939 with Petroleum Development (Trucial Coast) Ltd, but the exploration started only in 1950 with the first discovery made in the actual Bab field.

ADCO was incorporated as a joint venture on 1978 and has been responsible, since February 1979, for onshore Abu Dhabi operations in the concession area covering more than 21,000 square kilometers.

In ADCO, ADNOC is leading the joint venture where the working interests are shared between:

 – ADNOC 60% is the operator

 – BP 9.5%

 – ExxonMobil 9.5%

 – Shell 9.5%

 – Total 9.5%

 – Partex 2%

With its onshore oil and gas fields mandate, ADCO explores and develops six oil and associated gas fields such as Asab, Bab, Buhasa, Sahil, Shah, North-East Bab (NEB) with Dabbiya, Rumaitha and Shanayel, 

With these six fields, ADCO  delivers 65% of the UAE total crude oil production of 2.5 million barrel of oil equivalent (boe) per day.

Under the govern of its stakeholders, ADCO defines its mission to explore, develop and produce hydrocarbons within its concession with the:

 – Maximum efficiency and safety

 – Optimum cost

 – Minimum impact on the environment

 – Continuous improvement

 – Highest standards of honesty and integrity.

ADCO Key Figures

As a national oil company ADCO does not published results.

In 2012, ADCO produces 1.4 million barrel of oil equivalent (boe) per day.

ADCO Projects and Business Highlights

Among the key projects ADCO is working on:

 – NEB Full Field Development including the deployment of CO2 injection techniques tested on the Rumaitha pilot case to reach 230,000 b/d production in 2016.

 – Nitrogen Gas Injection (NGI) in Thamana F

 – Bab Gas Compression Project phase 2 to boost production from the Bab field to 2.5 billion cf/d of natural gas

  – Asab Full Field Development to increase production from 290,000b/d to 340,000 b/d of crude oil.

 With the support of its actual partners BP, ExxonMobil, Partex, Shell, Total or potential new ones, OMV, Statoil and Wintershall, ADCO will have to invest massively to overcome two challenges: increase crude oil production to meet OPEC quotas, and find gas wherever possible to secure Abu Dhabi independence. 

For more information and data about oil and gas and petrochemical projects go to Project Smart Explorer

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We Refine Right

The Abu Dhabi Oil Refining Company, so called TAKREER, is the operational entity of the Abu Dhabi National Oil Company (ADNOC) in charge of the refining business.

Until 1999, the downstream activities were left as a branch within ADNOC, but with the development of this sector in Abu Dhabi and major projects to be launched in the years 2000s, ADNOC decided to separate it and establish a dedicated entity to handle it.

Under TAKREER umbrella, ADNOC transfered all the activities related to:

 – Crude oil refining

 – Condensate transformation

 – Supply of petroleum products

 – Sulfur treatment and granulation for export

TAKREER key assets rely on the Abu Dhabi Refinery and the Ruwais refinery.

As the first refinery in the United Arab Emirates (UAE), the Abu Dhabi Refinery started operations in 1976 with a capacity of 15,000 b/d and a capital expenditure of $45 million.

In 1982, ADNOC proceeded to a first expansion to 60,000 b/d capacity.

In 1990, the Umm al Nar salt and chlorine plant was merged with the Abu Dhabi Refinery to become the ADNOC Abu Dhabi Refinery and Chlorine Division.

In 1992, ADNOC decided a new expansion to 85,000 b/d and the upgrade of the process with desulfurization and sulfur handling units.

The Abu Dhabi Refinery holds 500,000 cubic meter storage capacities connected to a marine terminal for loading and unloading tankers.

The Ruwais refinery was commissioned few years later in 1982 in the western region of the Emirate, 240 kilometers west of Abu Dhabi City with a capacity of 120,000 b/d.

The purpose was to create the Ruwais Industrial complex around this refinery.

In 1985, ADNOC invested in a first expansion of 27,000 b/d, and in 1986 the refinery was merged with the Ruwais General Utilities Plant for the supply of power and water.

In 1991, ADNOC added the sulfur handling and granulation units to become one of the largest in the world.

In 2002, TAKREER commissioned two condensate processing trains of 140,000 b/d, also among the largest in the world.

Today, the Ruwais Refinery manages a farm of 91 tanks with a storage capacity of 3 million cubic meters linked to a marine terminal.

Now integrated in the refinery, the Ruwais utilities run a 650 MW gas-fired power plant and a 60,000 cubic meters per day desalination facility. 

Today, the Abu Dhabi Refinery and the Ruwais Refinery have a capacity of 460,000 b/d (23 million t/y) of crude oil and condensate.

TAKREER Key Figures

As part of a national oil and non-listed company, TAKREER does not publish figures.

TAKREER Projects and Business Highlights

Abu Dhabi is targeting to increase its crude oil production to meet its OPEC quotas 2018.

In the same time Abu Dhabi strategy is defined to reduce its reliance on this crude oil market in developing the downstream activities.

In parallel, Abu Dhabi is running short of natural gas meaning that the development of the downstream activities including the petrochemical sector will be mainly based on crude oil.

In this context, TAKREER will take a leading role in ADNOC strategy for growth, value creation and employement.

As a first step of its development, TAKREER awarded in June 2012 a $2.5 billion engineering, procurement and construction (EPC) contract to Samsung Engineering from South Korea for the construction of a carbon black delayed coker (CBDC) at the Ruwais Industrial Complex.

The purpose of this new plant is to produce higher value added products such as synthetic rubber and resins from the crude oil refining and heavy residual oil recycling.

This project will include 12 processing units and 23 infrastructure offsites and utilities.

Planned to start operations in 2015, this carbon black delayed coker project reflects the $10 billion refinery expansion planned in Ruwais Industrial City.

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CH2M Hill is working on Adnoc Bab sour gas pre-FEED

BP, ExxonMobil, Korean National Oil Company (KNOC), Shell and Total are the happy few pre-qualified international oil companies to submit offer for the $10 billion development of the Bab sour gas project in joint venture with Abu Dhabi National Oil Company (Adnoc) in the United Arab Emirates (UAE).

Postponed since 2007, the selection of Adnoc‘s partner in this project takes a special dimension as it comes a year ahead a much bigger game with the renewal of the actual allocated concessions for the onshore exploration and production of the Abu Dhabi oil and gas fields for the next 30 years.

The offshore concessions will come for renewal in the same way in 2018.

Bab is part of these sour gas fields in Abu Dhabi with Shah and Hail to contain a high percentage of hydrogen sulphide and carbon dioxide (CO2).

To be developed originally together with Shah, the escalation of the project costs and technical challenges convinced Adnoc to proceed step by step.

In 2008, Adnoc awarded the Shah gas development project to ConocoPhillips.

But in 2010, ConocoPhillips withdrew from the project and was replaced by Occidental Petroleum (Oxy) in 2011.

Shah gas development was already a challenging project with 27% CO2, but Bab sour gas comes now with 50%, about twice more.

In addition, Bab gas field is given to contain less valuable condensate in quantity and in quality that could help the profitability of the investment.

For this reason, Adnoc is looking for partners such as BP, ExxonMobil, Shell or Total with a proven expertise in handling such a complex project with costs well under control.

After UK and South Korea, France courts Abu Dhabi

The engineering company CH2M Hill is currently working on the pre-front end engineering and design (Pre-FEED).

At this Pre-FEED stage, Adnoc is working on two scenario of development, one based on 500 million cubic feet per day (cf/d), one to reach 1 billion cf/d of sour gas.

From the actual estimation, Bab sour gas project should also require $10 billion capital expenditure.

The selected company should form a joint venture with Adnoc where the national oil company should hold 60% stakes while leaving 40% to the winning bidder.

Anticipating on the rules to be enforced with the concessions renewals, the nominated Adnoc‘s partner will be the operator of the concession to develop the Bab sour gas project on the next 30 years supported by a production sharing agreement.

With the nearing deadline, the competition between the companies intensifies involving the Governments of the most motivated countries.

On November 5th 2012, UK Prime Minister David Cameron visited Abu Dhabi with several objectifs including to add BP on the list of the invited companies to participate to the concessions renewal and of course to be considered carefully for Bab Sour gas in respect with BP experience in challenging fields. 

Only two weeks later, on November 21st 2012, a delegation of the South Korean Government paid a visit to Abu Dhabi with the support of the national oil company KNOC to position itself on new fields to be developed and secure minimum crude oil supply.

Following this visit Adnoc announced to re-tender the $4 billion Upper Zakum EPC2 package that might have escaped to South Korean contractors at that time.

In January 15th 2013, French President François Hollande attended the World Future Energy Summit in Abu Dhabi to promote Total as the most reliable partner for the onshore concessions and provider of technology for Bab sour gas.

With 9.5% shares in Abu Dhabi Company for Onshore Operations (Adco) Total benefits from a long standing experience in Abu Dhabi with additional shares in Abu Dhabi Marine Operation Company (Adma-Opco) and Abu Dhabi Gas Industries (Gasco).

So far the development of the gas fields, especially sour gas, in the UAE was not a priority but with the economical growth calling for more gas-fired power plants, gas injection to boost oil production and the development of the petrochemical sector, gas has become a critical resource in Abu Dhabi giving Gasco a leading role in the UAE.

In this context, the competition between BP, ExxonMobil, KNOC, Shell and Total should intensify on Bab sour gas until Adnoc makes the decision on first half 2013.

For more information and data about oil and gas and petrochemical projects go to Project Smart Explorer

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Technip to complete FEED work for onshore NEB 3

The national Abu Dhabi Company for Onshore Operations (ADCO) is making significant progress in the North East Bab field with the contracts to be awarded soon for the development of the third phase called NEB 3.

ADCO is the joint venture between Abu Dhabi National Oil Company (ADNOC) and international partners, BP, ExxonMobil, Shell, Total and Partex to develop onshore fields in the Emirate.

In the ADCO joint venture, ADNOC and its partners share the working interests as following:

 – ADNOC 60% is the operator

 – BP 9.5%

 – ExxonMobil 9.5%

 – Shell 9.5%

 – Total 9.5%

 – Partex 2%

The North East Bab (NEB) field is located 31 kilometers south west of Abu Dhabi City in the United Arab Emirates and covers 1,400 square kilometers.

As ADCO‘s largest asset, NEB is comprising four fields, Al-Dhabbiya, Rumaitha and Shanayel already in production and Jumaylah still untapped.

NEB is lying across Abu Dhabi coast line so that Rumaitha and Shamayel are onshore while Al-Dhabbiya is located 30 kilometers north mostly offshore in shallow water.

Because of its coastal position, NEB is environmentally sensitive with mangroves, coral reef, salt marshes and low level islands hosting unique and protected wildlife species.

In addition this area counts among the rare archaeological sites of the Emirate. 

For these reasons Abu Dhabi is paying the greatest attention that any oil and gas field development in NEB is designed and executed in entire respect with these environmental constraints giving the advantage to engineering companies familiar with the place and able to provide solutions to reduce the environmental foot print of the industrial activities during the projects phases and later when running into operations.

The third phase of North East Bad (NEB 3) development belongs to ADCO strategic plan to increase its production of crude oil from the current 1.4 million barrels per day (b/d) to 1.8 million b/d in 2018.

With Zakum Development Company (ZADCO) due to reach 1.7 million b/d by then, Abu Dhabi is targeting 3.5 million b/d in 2018.

This target is part of the quotas given by the OPEC organization to each producing country in order to ensure to continue to represent 40% of the global production by 2018.

This stake of 40% is the percentage that OPEC is continuously targeting  to maintain its influence on the crude oil global market.

In this perspective ADCO is planning to spend $1 billion capital expenditure in the NEB 3 project to add 110,000 b/d of crude oil production.

ADCO awarded PMC contract to Mott MacDonald

This North East Bab third phase project includes two packages:

 – Onshore, the development of the Rumaitha and Shamayel fields

 – Offshore, the development of the Al-Dabbiya

In the previous phases of NEB development Technip in joint venture with the  local National Petroleum Construction Company (NPCC) performed the engineering, procurement and construction (EPC) contracts while CH2M HILL was providing project management consultancy.

Currently Technip is working on the front end engineering and design (FEED) of the onshore part of the NEB 3 project.

ADCO is expecting Technip to complete this FEED by the end of April in order to organize the call for tender of the EPC contract for this onshore part on the second half of 2013.

Because of its complexity, the offshore Al-Dabbiya part of the NEB 3 project is phased up in a different schedule.

ADCO is currently evaluating the offers for the FEED work of the offshore package of NEB 3 in order to make a decision in April 2013 and to award the EPC contract by 2014.

In 2012, ADCO selected the UK-based Mott MacDonald to provide the project management consultancy services of the NEB 3 project, onshore and offshore.

According to the terms of its contract Mott MacDonald will support ADNOC and its partners BP, ExxonMobil, Shell, Total and Partex, for the FEED and the EPC work of ADCO North East Bab third phase (NEB 3) project.

For more information and data about oil and gas and petrochemical projects go to Project Smart Explorer

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Zadco to prepare call for tender on Umm al-Dalkh

After awarding Upper Zakum EPC-2 contract to Petrofac, the Abu Dhabi Zakum Development Company (ZADCO) is preparing the invitation to bid (ITB) for the development of Umm al-Dalkh, offshore Abu Dhabi in the United Arab Emirates.

On April 11th, 2013,  ZADCO awarded the engineering, procurement and construction (EPC) contract for the second package (EPC-2) of the Upper Zakum (UZ750) field development to a consortium of Petrofac Emirates and Daewoo Shipbuilding and Marine Engineering (DSME) from South Korea.

In this consortium Petrofac Emirates results from a joint venture between Petrofac from UK and the local Mubadala Petroleum (Mubadala) company.

Signed on the base of $3.79 billion capital expenditure, this EPC contract will provide Petrofac Emirates with $2.9 billion stake.

In February 2013, Petrofac had been given as the lowest bidder of a rebid organized for this package Upper Zakum EPC-2.

Since then ZADCO and its partners took some time to analyze in detail each offer as the top three bidders were so close.

Established in November 1977 to develop and operate the offshore field of Upper Zakum (UZ), ZADCO is a joint venture between:

 – Abu Dhabi National Oil Company (ADNOC) 60%, the operator

 – ExxonMobil Abu Dhabi Offshore Petroleum Company Ltd. (EMAD) 28% 

 – Japan Oil Development Company Ltd. (Jodco) 12%.

Located 84 kilometers northwest offshore Abu Dhabi and 56 kilometers from the export terminal on Zirku Island, Upper Zakum is the second largest crude oil field in the Gulf and the fourth one in the world.

In the same offshore area ly the fields of Umm al-Dalkh and Satah.

Originally developed by the Umm al-Dalkh Development Company (UDECO), ADNOC decided in 1988 to merge this company with ZADCO to unitize the development process and the means of production.

Tebodin completed the FEED on Umm al-Dalkh EOR

Umm al-Dalkh is covering 168 square kilometers only 25 kilometers distance from Abu Dhabi shore.

Lying by 2,310 meters, the Umm al-Dalkh field is composed of two reservoirs.

Discovered in 1969, Umm al-Dalkh has been developed in connection with Upper Zakum, 66 kilometers further north on the way to the export terminal based on the Zirku Island.

Currently, the crude oil extracted from Umm al-Dalkh is transported to Upper Zakum through a 14-inch pipeline where both fields production is carried out to Zirku Island by a 42-inch pipeline.

In 2010, the Dutch engineering company Tebodin won a first contract to enhance the production of Umm al-Dalkh.

According to this contract, Tebodin provided engineering, procurement, construction management (EPCM) services to:

 – Modify existing facilities

 – Add a new control system

– Install electrical submersible pumps

 – Electrical panels

 – Subsea power supply cable from the central platform

Then Tebodin was awarded the front end engineering and design (FEED) for another enhanced oil recovery (EOR) expansion including:

 – Gas injection

 – Water cuts handling.

With this last project, ZADCO is targeting to increase capacity from the current 13,000 B:d to 20,000 b/d.

Tebodin completed the FEED so that ZADCO is now preparing the invitation to bid for the engineering, procurement and construction (EPC) contract.

ZADCO is expecting to receive the technical and commercial offers on the third quarter 2013 in order to make the final investment decision (FID) and award the EPC contract before the end of the year.

For more information and data about oil and gas and petrochemical projects go to Project Smart Explorer

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ADCO evaluate offers for NEB-3 Onshore EPC contract

The United Arab Emirates (UAE) Abu Dhabi Company for Onshore Operations (ADCO) is currently evaluating the offers for the third phase of the North East Bab (NEB-3) project onshore Abu Dhabi.

As the other projects Upper Zakum, Umm Al-Lulu or Al-Nasr, NEB-3 is part of the giant upstream projects in Abu Dhabi to help the UAE to meet their targeted quotas of production in 2018.

In line with the other producing countries sitting at the OPEC, the goal is for each member to increase its production of crude oil so that the OPEC countries together can sustain their 40% market share globally.

In that perspective, Abu Dhabi is expected to reach 3.5 million barrels per day (b/d) in 2018.

Considering that the crude oil production increase must begin with compensating the natural decline of the maturing fields, such a goal represents a major effort for the producing countries.

All the companies of the Abu Dhabi National Oil Company (ADNOC) are involved in this program where ADCO is expected to contribute in ramping up its current production of 1.4 million b/d to 1.8 million b/d by 2018.

Within ADCO assets portfolio,  the third phase of North East Bab is expected to bring 110,000 b/d additional output.

Located less than 50 kilometers southwest of Abu Dhabi City, NEB lies along the shore line with onshore and offshore oil and gas fields.

Onshore, NEB includes the Rumaitha and Shanayel oil fields.

Offshore, NEB relies on the Al-Dabbiya oil field.

In between these fields, the coast line area is considered by Abu Dhabi Authorities are environmental sensitive,.

ADCO to phase up Onshore – Offshore NEB-3 project

Since the development of the onshore part and offshore portion of NEB-3 had to be split anyway, ADCO decided to phase up the project and the organize the call for tender separately for the onshore and offshore packages of the NEB-3 project.

For the development of Al-Dabbiya as part of NEB-3 Offshore project, ADCO is still evaluating offers for the front end engineering and design (FEED) work, while Technip completed the FEED for the Rumaitah and Shanayel onshore fields development project.

In the meantime ADCO awarded the project management consultancy (PMC) contract to Mott MacDonald in 2012.

From the 13 companies qualified by ADCO for Onshore NEB-3 engineering, procurement and construction (EPC) contract, 10 submitted a technical and commercial offer.

ADCO is currently evaluating these offers in order to make a decision at the end of 2013 or early 2014.

If ADCO is still willing to reach its production goal by 2018, it will have to move the NEB-3 project into the execution phase without any delay.

For more information and data about oil and gas and petrochemical projects go to Project Smart Explorer

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