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Abu Dhabi to gear up natural gas production from Bab field

ADCO receives bids on Bab Gas Compression Phase 2

Abu Dhabi Company for Onshore Oil Operations (ADCO) is receiving the technical and commercial offers of the engineering companies in competition for the engineering, procurement and construction (EPC) contract of the Bab Gas Compression Project phase 2.

ADCO is the Abu Dhabi National Oil Company (ADNOC) subsidiary in charge of the onshore oil fields exploration and production.

In that respect ADCO is mandated to increase the natural gas production by all means considering the gas shortage in Abu Dhabi to meet the continuously growing consumption.

The Bab field is one of the largest onshore oil and gas field in the UAE, delivering 25% of ADCO crude oil production and 75% of its natural gas production.

Located 150 kilometers southwest Abu Dhabi City, Bad is a complex reservoir made of many different oil and gas accumulations.

Spread over approximately 1,200 square kilometers, some Bab field pockets contain only oil or gas and some other oil rims covered by gas caps.

Therefore ADCO produces crude oil, associated gas and non associated gas out of Bab field.

Because of the large variety of the oil and gas accumulations ADCO is implementing Bab field development step by step with dedicated techniques to fit with the characteristics of each oil or gas pocket.

In 2009, ADCO initiated the Bab Gas Compression Project and awarded the EPC contract for the phase 1 to SK Engineering and Construction (SKEC) from South Korea with the compressors sanctioned to Mann-Turbo from Germany.

Comprising  three compression stations, this project was the first EPC contract signed by ADCO with a South Korean contractor

With the Bab Gas Compression Project (BGCP) phase 1 completed, ADCO is producing 1.8 billion cubic feet per day (cf/d) of natural gas.

SKEC completed FEED for ADCO Bab compression 2

From this achievement, ADCO is willing to gear up the natural gas production up to 2.5 billion cf/d with the Bab Gas Compression Project phase 2.

As SKEC performed successfully the phase 1, ADCO awarded it the conceptual study and the front end engineering and design  (FEED) work for the phase 2.

From the FEED work conclusions submitted by SKEC to ADCO, the Bab Gas Compression Project Phase 2 includes a:

 – Fourth gas Compression Station (CS4)

 – Additional natural gas gathering system to cover 32 new production wells

 – Offsites and Utilities

The new compression station CS4 should run with three gas compressors.

These compressors will maintain the pressure in the gas pipeline connecting ADCO gas gathering system to the Habshan gas central processing facility (CPF) 

SKEC completed the FEED work on early 2012, so that ADCO could organize the call for tender of the EPC contract in following.

From the pre-qualified companies, four submitted a technical offer:

 – Intecsa from Spain

 – Petrofac from UK

 – Samsung Engineering from South Korea

 – SK Engineering and Construction from South Korea

 These companies are currently submitting the commercial offers an estimated budget of $500 million capital expenditure.

ADCO is planning to award the EPC contract for the Bab Gas Compression Project Phase 2 on first quarter 2013 in order to begin operations on early 2015.

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