ADNOC Dishes Out Deal Worth Up To $519MM
Abu Dhabi National Oil Company (ADNOC) has announced the award of a contract worth up to $519 million (AED 1.9 billion) to BGP Inc, a subsidiary of China National Petroleum Company (CNPC).
The contract further expands the scope of the world’s largest combined three-dimensional (3D) onshore and offshore seismic survey, which is currently taking place in the Emirate of Abu Dhabi, ADNOC outlined. Following the new award, the total area to be covered by the survey is now up to 32,818 square miles, ADNOC highlighted.
The contract increases the scope of the survey to capture coastal areas, islands, and shallow water. It will utilize state-of-the-art technologies including cableless equipment and a wide range of environmentally friendly seismic sources, according to ADNOC.
ADNOC noted that the expansion underscores the important role seismic surveying plays in enabling the company to identify and explore new hydrocarbon resources. The business revealed that 50 percent of the award value will flow back into the UAE’s economy under ADNOC’s In-Country Value program.
“This award builds on the solid progress we are making in executing the world’s largest combined 3D seismic survey which is an important part of our strategy to accelerate the exploration and development of Abu Dhabi’s hydrocarbon resources,” Yaser Saeed Al Mazrouei, ADNOC’s upstream executive director, said in a company statement.
“It further demonstrates ADNOC’s commitment to realizing the full potential of our conventional and unconventional oil and gas resources to ensure the UAE remains a long-term and reliable energy provider to the world,” he added.
“The award follows a competitive tender process that ensures a significant portion of the value will flow back into the UAE’s economy, supporting local businesses in line with the leadership’s wise directives,” Mazrouei went on to say.
In July 2018, ADNOC awarded the first set of contracts for the survey and has so far recorded almost 60 percent progress in executing the initial scope, which includes onshore and offshore areas, the company highlighted. The entire survey, including the added coastal scope, is on track to be completed in 2024.
ADNOC is a leading diversified energy and petrochemicals group wholly owned by the Emirate of Abu Dhabi, according to its website. The company’s objective is to maximize the value of the Emirate’s hydrocarbon reserves through responsible and sustainable exploration and production to support the United Arab Emirates’ economic growth and diversification, ADNOC’s website states.
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