Bu Hasa EOR Development: Contractors Compete for Pipeline Works Targeting 70% Oil Output Growth

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Bu Hasa EOR Development

Bu Hasa EOR development has reached a new procurement milestone, with contractors submitting bids for pipeline construction and enhanced oil recovery infrastructure in Abu Dhabi. The project, officially designated Bu Hasa-Shuaiba Enhanced Oil Recovery (EOR) Unit 1 (Phase 1), targets a 70% increase in oil production. Additionally, ADNOC Onshore intends to extend the production plateau of the mature Bu Hasa oil field.

The latest bidding development advances the operator’s plans to extract more oil from the Shuaiba reservoir through improved recovery technologies. Moreover, the proposed infrastructure will connect new recovery facilities with existing production and processing installations.

The development represents an important investment in sustaining output from one of Abu Dhabi’s oldest and largest onshore oil assets. However, ADNOC has not disclosed the specific contract value for this EOR construction package.

Bu Hasa EOR Development advances pipeline construction procurement

ADNOC Onshore issued the construction tender on September 20, 2026, according to industry sources cited by MEED. Initially, the client set October 8 as the technical bid submission deadline. However, ADNOC subsequently extended the deadline to October 17, allowing contractors additional preparation time. Contractors have now submitted their bids, moving the package into the evaluation stage.

The procurement follows a hybrid contracting strategy combining lump-sum turnkey engineering, procurement and construction (EPC) works. The main package covers the complete pipeline system connecting the East Hub to the separation plant. Consequently, the selected EPC contractor will deliver an integrated pipeline system ready for operation.

The scope includes engineering, equipment procurement, construction, testing and pre-commissioning. Additionally, the contractor will provide commissioning support to achieve a complete and operational installation.

Meanwhile, ADNOC Onshore will manage water-alternating-gas (WAG) injector installations and water supply well (WSW) tie-in works through call-out-based contracting. This arrangement separates the principal pipeline EPC package from specialised injection infrastructure connections.

The distinction allows ADNOC to procure the main pipeline installation alongside additional field connection activities. Nevertheless, the operator expects the appointed contractors to coordinate their respective scopes within the wider recovery development.

The development also reflects a wider regional shift towards strengthening oil production and diversifying crude transportation infrastructure. Similarly, Saudi Arabia and Iraq are pursuing the revival of the historic $2.6 billion Iraq-Saudi oil pipeline, a proposed 1,568km export corridor connecting Basra’s Zubair oilfield to Yanbu on the Red Sea.

While the Bu Hasa project focuses on increasing recovery from an existing reservoir, the cross-border pipeline would expand regional export flexibility and reduce dependence on the Strait of Hormuz. Both developments highlight the strategic importance of investment in Middle Eastern oil infrastructure.

Bu Hasa EOR Development targets higher Shuaiba reservoir recovery

The project will improve recovery from the Shuaiba reservoir while extending the economic production life of Bu Hasa. Previous technical studies identified carbon dioxide (CO2) flooding as a promising tertiary recovery technology.

The proposed technology could unlock additional oil beyond existing improved oil recovery (IOR) operations. In particular, the development will build on the P5 improved oil recovery programme.

ADNOC Onshore intends to confirm the most suitable EOR technology for its highest-ranked reservoirs and production units. Furthermore, the operator will assess incremental recovery potential before implementing the recommended solution.

The programme also targets an ultimate recovery factor of 70% from the Shuaiba reservoir. This figure represents the targeted proportion of recoverable oil, rather than the targeted increase in production.

Importantly, the selected recovery technology will undergo phased implementation across suitable reservoir patterns. This approach will allow ADNOC to evaluate performance and optimise subsequent development stages.

Bu Hasa EOR History and Scope

The pipeline infrastructure will support the movement of production between the East Hub and separation plant. Additionally, injector installations and well connections will integrate recovery operations with existing field facilities.

Bu Hasa currently has approximately 650,000 barrels per day of crude oil production capacity. Located approximately 200 kilometres south of Abu Dhabi city, the field remains a major contributor to ADNOC Onshore’s production portfolio.

ADNOC discovered Bu Hasa in 1962 and commenced commercial production in May 1965. Consequently, the latest recovery development builds on more than six decades of production infrastructure.

The wider Bu Hasa Integrated Field Development Project has already expanded the field’s production infrastructure. The programme added 13 new well pads and two pad hubs.

Three remote degassing stations and two satellite stations support the existing production network. These include the Bida Al-Qemzan and Huwaila satellite stations.

Additionally, transfer pipelines measuring between 16 and 24 inches connect production facilities to central degassing stations. Some wells also connect directly to the central processing infrastructure.

The new EOR development will therefore complement existing gathering and processing arrangements. Its successful implementation could help sustain production from the Shuaiba reservoir for longer.

Meanwhile, the contractor selection process will determine the companies responsible for delivering the pipeline and associated injection infrastructure. ADNOC Onshore has yet to announce the successful bidders or the construction award value.

A separate $393 million Bu Hasa facilities development award announced in November 2026 covers Bu Hasa, Bida Qimzan and Huwaila. However, this award concerns a different facilities package and should not be treated as the value of the current EOR tender.

Bu Hasa EOR Development

Project Fact Sheet

Name: Bu Hasa-Shuaiba Enhanced Oil Recovery Unit 1 (Phase 1).

Common Project Name: Bu Hasa EOR Development.

Type: Enhanced oil recovery, pipeline construction and oilfield infrastructure.

Location: Bu Hasa oil field, Abu Dhabi, United Arab Emirates.

Objective: Increase oil production by a targeted 70% and extend the field’s production plateau.

Target Reservoir: Shuaiba reservoir.

Ultimate Recovery Factor Target: 70%.

Existing Production Capacity: Approximately 650,000 barrels per day.

Proposed Recovery Technology: Carbon dioxide flooding, identified through previous studies as a promising option.

Existing Recovery Programme: P5 Improved Oil Recovery.

Main Construction Package: Lump-sum turnkey EPC pipeline system.

Pipeline Route: East Hub to separation plant.

Additional Construction Scope: WAG injector installations and WSW tie-in works.

Contracting Strategy: Hybrid lump-sum turnkey and call-out-based arrangements.

Distance from Abu Dhabi: Approximately 200 kilometres south.

Project Team

Owner: Abu Dhabi National Oil Company (ADNOC)

Developer: ADNOC Onshore

Client: ADNOC Onshore

EPC Contractor: Not yet publicly identified

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