Impressive Expansion: The Nasr/Al-Nasr Oil Field

February 12, 2018 in Energy, Mining

The Arabian Gulf has remarkable potential for energy development. The Abu Dhabi Marine Operating Company (ADMA OPCO) are seizing this potential with the development of a new oilfield.

The Al Nasr field is located approximately 130 km northwest of Abu Dhabi City, off the coast of the United Arab Emirates. The site is close to the same operator’s long-established Umm Shaif field.

Al Nasr is being developed in order to reach new goals for oil production. The field currently produces 22,000 barrels of oil per day (bpd), but the project aims to bring this to a total of 65,000bpd. Oil produced from the field is transported to the Das Island through an existing subsea pipeline and further supplied to customers primarily in Japan and other Asian countries.

The project is operated by Adma-Opco, a joint venture of Abu Dhabi National Oil Company (Adnoc – 60%), BP (14.67%), Total (13.33%) and Japan Oil Development Company (Jodco, a subsidiary of Inpex Corporation – 12%).

The first oil from the field arrived in January 2015, concluding the early development phase (Phase I). Phase I was developed in conjunction with the Umm Lulu Phase I project. The combined development of these two fields utilised approximately 6,000t of structural steel, 28,000m of piping, more than 4,300 valves, 35,000 flanges and pipe fittings, and 200km of cables. Two wellhead towers (WHT 1&2) were installed, and developers connected a manifold tower (MFT-1) to nearby facilities at Abu Al Bukoosh (ABK) and Umm Shaif Oil Fields.

Help from various contractors has been crucial to the project’s success.

The engineering, procurement, construction and installation (EPCI) activities for Phase 1 was performed by Larsen & Toubro (L&T). The Project Management Consultancy (PMC) services were provided by Amec.

Complete telecoms and security system package for the project was supplied by 3W Networks.

KTL Offshore supplied cable-laid grommets, while Tube Development supplied structural tubulars, and ULO Systems supplied precast concrete mattress for the project.

The EPC contracts for Packages 1 and 2 were awarded to National Petroleum Construction Company (NPCC) and Hyundai Heavy Industries (HHI) respectively. The contract value for the former is $792m while that for the latter is $1.938bn. The engineering design services contract for Package 2 was awarded to KBR. The Package 3 contract worth $206m was awarded to Technip.

TWMA is providing specialist drill cuttings management services at the field using its offshore jack-up rigs, skip and ship services, and its proprietary EfficientC cuttings containment and distribution solutions.

The new contracts were signed by Ali Rashid Al Jarwan, chief executive officer (CEO) of Adma-Opco; Aqeel A. Madhi, CEO of NPCC; J. D. Kim, senior executive vice-president and COO, HHI; and Vaseem Khan, managing director of Technip France — Abu Dhabi and president of Region Middle East, at the Adipec 2014. This was witnessed by Ali Ghanim bin Hamoodah, SVP (P/E) Adma-Opco; Shaffique Al Dhiyebi, SVP at NPCC; S. H. Kim, executive vice-president, HHI; and Riccardo Moizo, SVP (PMC Business Unit), Technip.

The contract for the EPC Work of Nasr package one of the project was signed with NPCC, with a value of $792 million while the contract for EPC work of package two was signed with HHI with a value of $1.938 billion. The third contract was issued at $206 million, signed for by Technip for provision of project management consultancy services to the project.

Now that Phase I complete, Phase II is being implemented. Work is taking place under three separate engineering, procurement and construction (EPC) packages.

Package 1 involves the construction of seven wellhead towers, and installation of 110km of infield pipelines, an excess gas pipeline of 32km and an export oil line of 70km, while Package 3 involves the provision of project management consultancy (PMC) services for the entire project.

The core comes from Package 2: the installation of a multi-platform super complex. The super complex will integrate a gas treatment platform, a separation platform, an accommodation platform, utilities, flares, and bridges.

Lastly, Package 3 includes the installation of 44km subsea power and 55km infield cables to connect the complex with the existing power generation facilities at Umm Shaif Super-Complex and Das Island. The existing manifold and wellhead towers at Nasr field will also be modified under this contract.

The front-end engineering and design (FEED) studies for Phase II were performed by Fluor Offshore Solutions, while the Health, Safety & Environmental Impact Assessment (HSEIA) was conducted by Dome.

With contracts signed, work in progress, and an achievable schedule set, the operators can consider the potential of the oilfield. ADNOC, one of the major players involved in the Adma-Opco operations unit, have made the best of a difficult situation over the past couple of years. There has been a marked drop in oil prices, to which they responded quickly. In part, this is thanks to the groundwork that was put in place beforehand. The President for Total UAE, Hatem Nuseibeh, told The Business Year:

“Abu Dhabi started taking the right steps even before oil prices went downhill. … [For the past three years] I noticed local authorities doing the groundwork and making preparations in case of a lower oil price environment.”

Salem Ashoor, his counterpart at British Petroleum in the UAE, built on this. He said:

“ADNOC has embarked upon a journey that will become the new benchmark for NOCs, where capability, technology, efficiency, and selectivity will become vital when it comes to building partnerships.”

The latest move from the company has been the launch of ADNOC’s 2030 Strategy. After gaining approval from the UAE Supreme Petroleum Council in November 2016, the plan to drive ADNOC’s long-term success in an evolving energy market is set. The strategy aims to strengthen the company’s role as a major contributor to the country’s development. It also wants to meet governmental objectives for economic diversification.

Strategy 2030 hopes to turn the institution into a more agile and resilient company, ‘driven by performance, focused on people’, and with an overarching ambition to have the highest KPIs in the industry. It is being completed by leadership and youth development programs. According to The Business Year, the programs are intended to ‘foster a breed of Emiratis capable of coping with the new scenario of ADNOC’s activities, become increasingly specialized on technology-driven machinery, and enable global mobility of local staff.’

ADNOC have developed a roadmap to see their upstream, midstream, and downstream areas, making business as profitable as possible. On the upstream side, which represents their largest source of revenue, they seek to achieve a production target of 3.5 million bpd by 2018. This is an impressive and considerable increase from the 400,000bpd that were reported in November 2016.

Dr. Sultan Al Jaber, CEO of ADNOC, said:

“Our ultimate goal is to remain a key contributor to the UAE economy and a leading player in advancing the industry where we will ensure the oil and gas needs of our domestic and international customers are met and also enhance our downstream and petrochemical businesses to take advantage of growing demand for higher value products.”

Sites such as Al Nasr will certainly help contribute towards meeting these goals. Work is expected to conclude in the first half of 2019.