ADCO to Award More Oil Projects by Year-end
ABU DHABI - The Abu Dhabi Company for Onshore Oil Operations, or ADCO, plans to award three more oil projects by the end of the year, thanks to a halving of related production costs, such as construction expenses, due to the financial crisis.
ADCO, a unit of the Abu Dhabi National Oil Company responsible for onshore oil and gas operations, has finalised plans to award three new oil projects at the Bab 1.8, Beda Al Qamzan and Kuzwaira oil fields.
Once these fields are producing, they will together add 400,000 barrels of crude per day to ADCO’s daily output, enabling the company to pump at a sustained level of 1.8 million barrels per day by 2016, ADCO’s General Manager Abdul Munim Saif Al Kindy said on Thursday.
This increased production would raise the UAE’s total petroleum output to 3.5 million barrels per day, Al Kindy told reporters.
Also on Thursday, ADCO signed an agreement for a gas compression project with South Korean company SKE&C. The deal, worth $818 million, calls for the installation of three gas compression stations at an area known as Tamama C within the Bab gas field complex. This project was initially estimated to cost $1.5 billion before the onset of the financial crisis.
Al Kindy described the Bab project as an important component of ADCO’s overall gas production network.
Tamama C currently holds 1.5 trillion cubic feet, or TCF, of recoverable gas. The Bab gas compression project would increase the amount of recoverable gas there by 2.5 TCF and extend the life of the Tamama C gas reservoir to 2030, ADCO said.
ADCO’s goal is to maximise gas production in the Bab reservoirs from the year 2011. This gas would supply a plant operated by ADCO’s affiliate GASCO at Habshan. ADCO currently produces 5.3 billion cubic feet of gas per day.
ADCO said it has saved $1 billion in costs on a project initially valued at $4.5 billion to develop the emirate’s Asab, Sahil and Shah oil fields. The work was awarded in February to a London-based engineering and construction company called Petrofac for $3.5 billion.
ADCO, a unit of the Abu Dhabi National Oil Company responsible for onshore oil and gas operations, has finalised plans to award three new oil projects at the Bab 1.8, Beda Al Qamzan and Kuzwaira oil fields.
Once these fields are producing, they will together add 400,000 barrels of crude per day to ADCO’s daily output, enabling the company to pump at a sustained level of 1.8 million barrels per day by 2016, ADCO’s General Manager Abdul Munim Saif Al Kindy said on Thursday.
This increased production would raise the UAE’s total petroleum output to 3.5 million barrels per day, Al Kindy told reporters.
Also on Thursday, ADCO signed an agreement for a gas compression project with South Korean company SKE&C. The deal, worth $818 million, calls for the installation of three gas compression stations at an area known as Tamama C within the Bab gas field complex. This project was initially estimated to cost $1.5 billion before the onset of the financial crisis.
Al Kindy described the Bab project as an important component of ADCO’s overall gas production network.
Tamama C currently holds 1.5 trillion cubic feet, or TCF, of recoverable gas. The Bab gas compression project would increase the amount of recoverable gas there by 2.5 TCF and extend the life of the Tamama C gas reservoir to 2030, ADCO said.
ADCO’s goal is to maximise gas production in the Bab reservoirs from the year 2011. This gas would supply a plant operated by ADCO’s affiliate GASCO at Habshan. ADCO currently produces 5.3 billion cubic feet of gas per day.
ADCO said it has saved $1 billion in costs on a project initially valued at $4.5 billion to develop the emirate’s Asab, Sahil and Shah oil fields. The work was awarded in February to a London-based engineering and construction company called Petrofac for $3.5 billion.
quoted from: Khaleej Times
