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Adnoc awards $519M contract to expand world’s largest 3D seismic survey

Issac John /Dubai
issacjohn@khaleejtimes.com Filed on November 26, 2020
Adnoc’s exploration drive over the past years has resulted in the discovery of 22 billion barrels of recoverable unconventional oil resources.

(File photo)

Expansion underscores important role seismic surveying plays in enabling Adnoc to identify and explore new hydrocarbon resources

Abu Dhabi National Oil Company (Adnoc) on Thursday announced the award of a contract worth $519 million to expand the scope of the world’s largest combined three-dimensional onshore and offshore seismic survey underway in Abu Dhabi.

The energy giant, which aims to invest over Dh160 billion back into the UAE economy between 2021 and 2025 in line with a record Dh448 billion capital expenditure plan, said the expansion underscored the important role seismic surveying plays in enabling it to identify and explore new hydrocarbon resources.

The expansion underscores the important role seismic surveying plays in enabling Adnoc to identify and explore new hydrocarbon resources.

Adnoc’s exploration drive over the past years has resulted in the discovery of 22 billion barrels of recoverable unconventional oil resources and an addition of two billion barrels of conventional oil reserves, elevating the UAE as the nations with the world’s sixth-largest recoverable oil reserves at 107 billion barrels.

In November 2019, the Supreme Petroleum Council announced increases in hydrocarbon reserves of seven billion barrels of oil and 58 trillion standard cubic feet (TSCF) of conventional gas, as well as the discovery of unconventional recoverable gas resources totalling 160 TSCF.

In a statement, Adnoc said the mega seismic survey also supported the discovery of the conventional oil and gas reserves and the unconventional gas resources added to its portfolio in 2019.

The contract was awarded to BGP, a subsidiary of China National Petroleum Company, represented in the UAE by Al Masaood Oil Industry Supplies & Services Co. This new award brings the total area to be covered by the survey up to 85,000 sqkm and reinforces Adnoc’s commitment to unlocking the full potential of Abu Dhabi’s vast hydrocarbon resources.

“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,” said Yaser Saeed Al Mazrouei, Adnoc’s upstream executive director.

“The 3D seismic survey further demonstrates Adnoc’s commitment to realising the full potential of its conventional and unconventional oil and gas resources to ensure the UAE remains a long-term and reliable energy provider to the world.”

“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,” said Al Mazrouei. Under Adnoc’s ‘In-Country Value’ (ICV) programme, 50 per cent of the award value will flow back into the UAE’s economy, highlighting how Adnoc continues to prioritise ICV as it invests responsibly to deliver its 2030 strategy, said the statement.

In July 2018, Adnoc awarded the first set of contracts for the seismic survey and has so far recorded almost 60 per cent progress in executing the initial scope which includes onshore and offshore areas. The entire survey, including the added coastal scope, is on track to be completed in 2024.

— issacjohn@khaleejtimes.com

author

Issac John

Editorial Director of Khaleej Times, is a well-connected Indian journalist and an economic and financial commentator. He has been in the UAE's mainstream journalism for 35 years, including 23 years with Khaleej Times. A post-graduate in English and graduate in economics, he has won over two dozen awards. Acclaimed for his authentic and insightful analysis of global and regional businesses and economic trends, he is respected for his astute understanding of the local business scene.





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