ADNOC Onshore has invited contractors to bid for the Bu Hasa EOR Unit 1 (Phase 1) project tender. The Bu Hasa EOR project targets a 70 percent lift in output at its westernmost producing field. MEED reported the tender on 16 October.
Sources told MEED the client issued the tender on 20 September. The initial technical bid deadline of 8 October slipped to 17 October, and bids are now in. The unit opens Phase 1 of the wider programme. That programme also aims to extend the field’s production plateau. ARAMCO is also making advancements in its projects with the East-West pipeline being a clear illustration of that.
Saudi Aramco has started preliminary engineering on its East-West pipeline expansion, the crude artery that bypasses the Strait of Hormuz. CEO Amin Nasser confirmed the work on Tuesday during the analyst call after third-quarter results. The company plans to lift capacity from 7 million barrels per day to as much as 10 million.
Scope of implementation on the Bu Hasa EOR project
The contract uses a hybrid structure. One part prices a lump-sum turnkey EPC package. It covers the complete pipeline system from the East Hub to the separation plant. The other is a call-out scope covering water-alternating-gas injector wells and well tie-in works.
The EOR work carries three technical tasks. Contractors must confirm the best recovery technology, assess incremental recovery, and execute the chosen option in phased patterns. Earlier studies identified carbon dioxide flooding as a promising tertiary method for the Shuaiba reservoir. MEED cited a targeted 70 percent ultimate recovery factor for that reservoir, a separate figure from the production target.
Meanwhile, ADNOC is building out the chemicals side. In May, the company signed an agreement with SNF. The deal explores enhanced oil recovery opportunities in the UAE, including potential local chemicals manufacturing.
Field background and investment history
Bu Hasa sits about 200 kilometres south of Abu Dhabi city and holds crude capacity of 650,000 barrels a day. Discoverers found the field in 1962, and it has produced since May 1965. Three remote degassing stations and two satellite stations operate today. The Bu Hasa Integrated Field Development Project has also added 13 new well pads plus two pad hubs.
The field also carries a recent investment record. In May 2021, ADNOC Onshore awarded two EPC contracts worth $318 million, about AED 1.17 billion. They will connect up to 260 smart wells to the production facilities. That programme gives the new EOR phase its well infrastructure base.
Challenges facing the Bu Hasa EOR project
The technical demands set the pace for the Bu Hasa EOR project by ADNOC. CO2 flooding at this scale requires stable CO2 supply, injection hardware and reservoir monitoring across decades. The hybrid contract structure also splits risk. The turnkey pipeline package prices firmly, while the call-out WAG scope flexes with drilling outcomes. Contractors must therefore price uncertainty in the injector programme.
ADNOC Onshore has disclosed no contract value for the EOR unit itself. The $318 million figure covers the 2021 smart-wells award, not this tender, and the factsheet keeps the two separate. ADNOC Onshore has also not named a commercial award date.
Even so, the direction is clear. The client wants to push the Shuaiba recovery factor toward 70 percent. It also wants the production plateau extended and the field’s remaining decades more productive. Bid evaluation comes next.
Project Overview
- Reference Value: $318 million prior award
- Location: Bu Hasa field, Abu Dhabi
- Client: ADNOC Onshore
- Status: Technical bids submitted
Scope
- Turnkey pipeline package, East Hub
- Pipeline runs to separation plant
- Call-out WAG injector works
- Well tie-ins across field
Project Highlights
- Targets 70 percent output rise
- Seeks 70 percent recovery factor
- CO2 flooding identified as promising
- Builds on 13 new well pads
Key Developments
- Tender issued 20 September
- Bid deadline extended to 17 October
- SNF chemicals deal signed May
- Smart-wells EPC completed 2021
Key Challenges
- CO2 supply must scale
- Hybrid contract splits risk
- Recovery factor unproven at target
- Award value still undisclosed
Outlook
- Bid evaluation under way
- Commercial award date unconfirmed
- Phased EOR patterns follow
- Plateau extension is goal
Leave a Reply