UAE's ADNOC to invest $1.4 bln to boost onshore oil capacity

State-run Abu Dhabi National Oil Company (ADNOC) on Wednesday said it will invest AED 5.1 billion ($1.4 billion) to upgrade and expand onshore Bu Hasa field to boost its crude oil production capacity to 650,000 barrels per day (bpd) by 2020-end.

ADNOC Onshore, the operator of the field and an ADNOC subsidiary, has awarded an engineering, procurement and construction (EPC) contract to Spain's engineering company Tecnicas Reunidas SA.

The upgradation work will take 39 months for completion and 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.

In addition to the incremental oil production from Bu Hasa, the project will streamline water handling, implement a second gas lift recovery phase and improve the overall production efficiency while reducing the number of inactive wells.

ADNOC’s plans to increase its crude oil production capacity to four million barrels per day (mmbpd) by 2020, and five mmbpd by 2030.

The Bu Hasa field, located 200 kilometers south of Abu Dhabi city, is one of ADNOC’s oldest oil fields, with production starting in 1965.