ADCO to invest $1 billion in Shahil, Qusahwira, Mender
Abu Dhabi Company for Onshore Oil Operations (ADCO) is activating the South East Full Field Development (FFD) project related to Asab Sahil, Qusahwira and Mender crude oil fields in the southeast of the United Arab Emirates (UAE).
This project is part of Abu Dhabi program to reach 3.5 million barrels per day (b/d) production by 2018 as defined within the OPEC targeted quotas to maintain 40% market share of the global oil production estimated at that time.
As some previous projects, such as Upper Zakum, Umm al-Lulu, Sarb, have been awarded with months of delay, the target of 3.5 million b/d may be reached only in 2020 or 2021, unless some projects could be kicked off in between.
For this reason, ADCO expects to implement the South East Full Field Development on rather fast track.
To harvest the low hanging fruits from ADCO South East assets, this Full Field Development project includes:
- Asab 6 & 7
- Mender Phase-1
- Qusahwira Phase-2
- Sahil Phase-2
Together with the Mender crude oil field, which has never been turned into production so far, ADCO is aiming at the completion of this South East Full Field Development project in 2017.
Asab is located 185 kilometers south of Abu Dhabi City and contributes so far to 73% of South East Hub production.
Mender is bordering Saudi Arabia and Oman at the extreme south of the Emirate, and was never developed so far.
Qusahwira is lying also in the extreme south, 260 kilometers from Abu Dhabi, and is just completing the phase-1.
Sahil stands 48 kilometers northeast Asab and its phase-1 provides 14% production of the South East Hub.
Currently the South East Hub represents 30% of ADCO production.
WorleyParsons won Sahil-Qusahwira-Mender FEED
ADCO selected WorleyParsons to perform the front end engineering and design (FEED) and is currently evaluating the tenders submitted for the project management consultancy (PMC) contract.
This PMC contract should be awarded at the end of 2013.
From the FEED work, the South East Full Field Development project should add 143,000 b/d to ADCO production coming from:
- Mender 20,000 b/d
- Qusahwira 23,000 b/d
- Sahil 100,000 b/d
In respect with the dispersion of the oil and gas fields within the South East Hub, the project will include:
- Oil lines booster pumps
- Water alternating gas wells
- Separators
- Gas injection compressors
- Water injection pumps
- Water disposal pumps
- Flowlines
With this equipment, ADCO intends to deploy all the enhanced oil recovery (EOR) techniques in order to maintain the targeted production plateau as long as possible.
ADCO is budgeting $1 billion capital expenditure in the South East Full Field Development project so that the engineering, procurement and construction (EPC) contracts for Sahil, Qusahwari and Mender should be awarded in 2014 for completion in 2017.
