UAE – ADNOC awards a contract worth AED 1.9 billion to expand its economic and local market for its 3D geophysical survey project

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(MENAFN – Al-Bayan) Date: November 26, 2020 The Abu Dhabi National Oil Company (ADNOC) today announced the award of a contract worth 1.9 billion dirhams (519 million US dollars) to BGB Company, to expand the scope of the three-dimensional geophysical survey project it is currently implementing in the Emirate of Abu Dhabi, which is the largest project. A survey of land and marine areas of the world.

The expansion of the scope of operations underscores the important role the geophysical survey plays in enabling ADNOC to explore and identify new hydrocarbon resources, especially following the large discoveries of unconventional recoverable oil resources and the increase in conventional oil reserves announced by the Abu Dhabi Supreme Petroleum Council earlier this week. . This geophysical survey also contributed to the disclosure of conventional and non-conventional gas and oil resources that were added to ADNOC’s portfolio in 2019.

The contract was awarded to the global “BGB” company specialized in geophysical surveying of the China National Petroleum Corporation “CNBC” and represented in the UAE by Al Masoud Petroleum Supplies and Services Company. This contract brings the total area covered by the survey to 85,000 square kilometers, reinforcing ADNOC’s commitment to seek to benefit from the full potential of Abu Dhabi’s rich hydrocarbon resources.

50% of the total value of the contract will be redirected to the local economy through the ADNOC In-Country Value (ICV) program, reflecting ADNOC’s continued prioritization of enhancing in-country value as it implements its 2030 integrated strategy for smart growth.

This contract increases the scope of extensive and continuous geophysical surveys to include coastal areas, islands and shallow waters. The survey will be carried out using modern, cable-free technologies and a wide range of environmentally friendly technologies and equipment.

Yasser Saeed Al Mazrouei, CEO of ADNOC Exploration, Development and Production said – on this occasion -: “The award of this contract reflects the continuous progress that ADNOC is making in implementing this geophysical survey, which is the largest in the world and forms an important part of our strategy to accelerate the pace of exploration And developing Abu Dhabi’s hydrocarbon resources, this achievement also confirms ADNOC’s commitment and constant focus on maximizing value from Abu Dhabi’s conventional and non-conventional oil and gas resources to maintain the UAE’s position as a reliable provider of stable and secure energy supplies in the long term. ”

He added, “This contract was awarded following a rigorous and competitive bidding process that included redirecting a large portion of the value of this contract to the local economy and supporting local private sector companies, in line with the directives of the wise leadership and ADNOC’s commitment to enhancing value for the UAE and its people.”

The geophysical survey project uses pioneering technologies to provide intense data and capture high-resolution 3D images of complex geological structures deep below the Earth’s surface, helping to identify potential hydrocarbon reservoirs. This data, which is analyzed in ADNOC’s Thumama Center for the Study of Petroleum Reserves, will benefit all the winning exploration companies in the first round of competitive bidding they launched in Abu Dhabi as part of their strategy to issue licenses for new areas for exploration, development and production of oil and gas. The survey data will also be provided against a fee to the winning companies in the second round, whose results will be announced this year, following the approval of the Supreme Petroleum Council to start awarding new areas within this round.

In July 2018, ADNOC awarded the first set of geophysical survey contracts, which achieved progress of about 60% in implementing the works stipulated in these contracts, which include land and marine areas. Survey work, including the new coastal areas that have been added, will be completed in 2024 according to the approved schedule.

Earlier this week, the Supreme Petroleum Council in Abu Dhabi announced new discoveries of unconventional oil resources that can be recovered in land areas estimated at about 22 billion barrels of oil, in addition to an increase in conventional oil reserves by 2 billion barrels of oil in the Emirate of Abu Dhabi. These conventional oil reserves announced by the Council contribute to increasing the UAE’s reserves of conventional oil resources to 107 billion barrels of recoverable oil.

The Board also approved ADNOC’s award of new areas for exploration, development and production of oil and gas as part of the second round of competitive bidding launched by Abu Dhabi in 2019 as part of its strategy to issue licenses for new areas.

In November 2019, the Supreme Petroleum Council announced the discovery and addition of hydrocarbon reserves estimated at 7 billion barrels of crude oil and 58 trillion standard cubic feet of conventional gas, in addition to the discovery of unconventional recoverable gas resources estimated at 160 trillion standard cubic feet.

In line with the criteria for the comprehensive commercial evaluation of bids and tenders, which include a special item to enhance the in-country value, ADNOC has studied the extent to which the offers submitted by companies contribute to enhancing the in-country value in the various stages of implementation. By adopting and adopting this mechanism in the commercial contract evaluation process, ADNOC aims to support cooperation and partnerships between local and international companies, support economic and social development efforts, and provide more jobs for citizens in the private sector. The winning bid gives priority to providing project materials from sources within the UAE, approving local suppliers and manufacturers, employing local human cadres, in addition to using the latest technologies.

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