MEDIA COVERAGE

ADMA-OPCO Signs $3.5 Billion Contracts for Nasr Field Development, Additional Gas Production at Umm

Published Date : 11, Nov 2014

Abu Dhabi Marine Operating Company, ADMA-OPCO, has signed three major contracts for Nasr Full Field Development Project with National Petroleum Construction Company (NPCC), Hyundai Heavy Industries (HHI) and Technip, at an approximate total value of USD 3 billion (Dh11.02 billion).

ADMA-OPCO has also awarded a forth contract for EPC Work for Additional Gas Supply to Onshore & Flexibility Assurance at Umm Shaif Super Complex to NPCC at an approximate value of USD 494 million (Dh1.8 billion).

The Nasr development is a strategic initiative of Abu Dhabi National Oil Company (ADNOC) and fits within the context of ADMA-OPCO's plans to add 270 mbpd of additional production from its new fields Umm Lulu, Nasr and Satah Al-Razboot (SARB), as part of its overall scheme to raise oil production.

The new contracts were signed today in ADNOC Stand at the Abu Dhabi International Petroleum Exhibition and Conference (AIPDEC 2014) at the Abu Dhabi National Exhibitions Centre (ADNEC), by Ali Rashid Al-Jarwan, CEO of ADMA-OPCO; Aqeel A. Madhi – CEO, NPCC; J. D. Kim, Senior Executive Vice President & COO, HHI, and Vaseem Khan, Managing Director of Technip France - Abu Dhabi and President of Region Middle East.

The signing was witnessed by Ali Ghanim Bin Hamoodah SVP (P/E) ADMA-OPCO; Shaffique Al Dhiyebi – SVP (P), NPCC; S. H. Kim, Executive Vice President, HHI and Riccardo Moizo, SVP - PMC Business Unit, Technip.

The contract for the EPC Work of Nasr Package 1 of the Project was signed with National Petroleum Construction Company (NPCC), with a value of USD 792 million; while the contract for EPC Work of Package 2 was signed with Hyundai Heavy Industries (HHI) with a value of USD 1,938 million. The third contract with a value of USD 206 million was signed with Technip for provision of Project Management Consultancy Services to the project.

The hydrocarbons reservoir known as Nasr Field is located offshore, 131 km north-west of Abu Dhabi city, and is being developed by ADMA-OPCO in two phases. The EPC Contract for Phase-I was awarded in July 2011; two wellhead towers and a manifold tower constructed under this contract are in the final stages of completion. The contracts signed today are for Phase II or the "Full Field Development" stage of the Project. It is anticipated that upon successful completion of Phase II, Nasr field will yield an annual average production of 65 MSTBOPD of crude oil.

The Start-Up of the project is scheduled to be achieved by end of 2018 and final commissioning by 2Q 2019.

In addition to Satah Al Razboot and Umm Lulu, Nasr is the third offshore hydrocarbon reservoir being developed by ADMA-OPCO under its strategy to increase its production.

This strategy is an integral part of the goals set by Abu Dhabi’s leadership led by His Highness Sheikh Khalifa bin Zayed Al Nahyan, President of the UAE and follow up of His Highness General Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi, Deputy Supreme Commander of UAE Armed Forced, to increase the Emirate’s oil production. The implementation of these projects is closely monitored and guided by the Supreme Petroleum Council (SPC).

Through the Project titled "Additional Gas Supply to Onshore & Flexibility Assurance at USSC", ADNOC intends to transfer additional gas from Umm Shaif (US) Field to Habshan through Das Island. This new Project is undertaken on a fast-track basis to fully utilize the available gas streams in order to increase onshore gas supply. The Project is executed in two parts i.e. offshore part by Abu Dhabi Marine Operating Company (ADMA-OPCO) and the remaining part by otherADNOC Companies.

The additional 200 MMSCFD gas would be in addition to the planned gas flow of 1,000 MMSCFD realized under the already commissioned IGD Project. The additional 200 MMSCFD gas at Umm Shaif Super Complex (USSC) will be made available by increasing the total off-take level of US Khuff to 1,600 MMSCFD by mid-2016 and up to 2025, which is against currently planned off take level of 1,400 MMSCFD annual average from mid-2013 to mid-2028. This will be achieved by the production from two new Khuff wells and a new Khuff well, which waspart of 1,000 MMSCFD gas supply to Onshore (IGD Project). In addition facilities such as WHT US-58, ABK-TIP and GTP require debottlenecking to provide additional operational flexibility and improve availability and supply of HP gas to Onshore (CAP Gas).

Following the signing ceremony, ADMA-OPCO CEO commended the wise vision of the Government of Abu Dhabi and the continued support of the Emirate's leadership to the oil and gas production enhancement plans.

"These key projects come under the guidance of Abu Dhabi Government and the support of the SPC and the Shareholders," said Al-Jarwan, stressing that the entire project is in line with ADNOC’s plans to ensure sustained oil production, while maintaining highest HSE standards.

He said this project is one of the biggest projects ever, noting "We are proud of our strategic and long standing partnership with NPCC, Hyundai and Technip and hope that the project would be completed as per the set schedule and quality standards." Al-Jarwan said ADMA-OPCO has also taken advantage of this major project to develop and train young UAE nationals in engineering and project Management as part of the EPC agreement."As part of our commitment to building the future of Abu Dhabi and UAE nationals we are investing in the advancement of the future oil and gas leadership by implementing a comprehensive, well-structured career development programme for young UAE nationals as part of the EPC contracts for the new oil fields where the selected candidates will be assigned to the EPC contactors’ premises and participate within the projects’ task force."

The EPC Work of Nasr Package 1 entails construction of seven wellhead towers, laying of infield pipelines of a combined length of 110 km, an excess gas pipeline of 32 km and a main (export) oil line of 70 km. The EPC Work of Package 2 includes construction of Nasr Super Complex comprising an accommodation platform, a gas treatment platform and a separation platform. Also covered under this package is work associated with supply of power to Nasr and existing Umm Shaif Super-Complex through sub-sea cables from power generation facilities at ADMA-OPCO’s Das Island and the construction of a power distribution platform at Umm Shaif Super Complex.