Abu Dhabi – Mubasher: The Abu Dhabi National Oil Company (ADNOC) on Wednesday announced that it will invest an amount of AED 5.1 billion ($1.4 billion) to upgrade and expand its Bab and Bu Hasa.

This will increase ADNOC’s crude oil production capacity to 650,000 barrels per day (bpd), according to the state-run company’s statement.

“This is an important step towards delivery of ADNOC’s 2030 smart growth strategy that seeks to increase its crude oil production capacity and reduce the cost to create a more profitable upstream business,” the statement highlighted.

Upgrading and expansion works are expected to take around 39 months, raising the company’s production capacity to 650,000 bpd instead of 550,000 bpd by the end of 2020.

“This significant investment in the Bu Hasa field will enable production capacity to be increased and generate additional value. We are on track to meet our production capacity target of 3.5 million barrels of oil per day by the end of this year,” Sultan Al Jaber, the UAE Minister of State and ADNOC Group CEO, said.

An Engineering, Procurement and Construction (EPC) contract has been awarded to Tecnicas Reunidas SA by ADNOC’s subsidiary, ADNOC Onshore, which operates the field. 

The contract was inked by Yasser Saeed Al Mazrouei, CEO of ADNOC Onshore and Ricardo Sanchez Galindo, Upstream Business Development director, Tecnicas Reunidas. 

It was signed at the sidelines of the Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC), which commenced on Monday and ends Thursday, 15 November.

“This contract is yet another sign of our clear commitment to making smart investments to maximize the value of Abu Dhabi’s oil resources and drive significant In-Country Value, in line with our wise leadership’s directives,” Al Jaber added.

Upgrading the field includes facilities, new pipeline networks, and production hubs, as well as the conversion of three trains in a central degassing station and other related facilities.

ADNOC targets increasing its crude oil production to 4 million bpd in 2020, and 5 million bpd in 2030.