Al Dhafra Petroleum signs $272m Haliba water deal, its largest

Summary

• Al Dhafra Petroleum awarded Excel Astra a $272 million produced-water treatment contract at Abu Dhabi's Haliba field.
• The ADNOC-led venture says it is the company's largest design, build and operate agreement to date.
• The facilities underpin Haliba's push toward a 50,000 barrels-per-day oil production target.

The latest

A 1 billion dirham ($272 million) agreement will deliver new produced-water treatment facilities at the Haliba oil field in Abu Dhabi, Al Dhafra Petroleum said, naming Excel Astra Engineering & Construction as contractor. The company described it as its largest design, build and operate award so far, and tied it to the next phase of growth at the field.

Details

• The numbers: The contract is valued at 1 billion dirhams, or $272 million, according to Al Dhafra Petroleum. The company said no previous design, build and operate agreement in its history has been larger, though it did not disclose the contract's duration or a completion date for the new facilities.
• The ownership: Al Dhafra Petroleum is a joint venture formed in 2014 in which ADNOC holds 60%, with the remaining 40% held by the Korean National Oil Consortium, grouping the Korea National Oil Corporation and GS Energy. The venture operates the Haliba field.
• The target: The company said the new facilities will support the next phase of growth at Haliba and help it reach an output target of 50,000 barrels per day of oil. It did not set a date for hitting that level.
• The scope: Excel Astra will design, build and operate plants treating produced water, the water that emerges from the reservoir alongside crude. Treated water is commonly reinjected into the reservoir to sustain pressure, a step that becomes more important as a field matures and its water cut rises.
• The model: Under the design, build and operate structure, Excel Astra retains operation of the facilities after construction rather than handing them directly to Al Dhafra Petroleum. The arrangement shifts longer-term running responsibility onto the contractor.
• The field: Haliba, also known as the Area 1 onshore field, sits near Abu Dhabi's south-eastern border and began production in July 2019. It has been operated by Al Dhafra Petroleum since the venture was established five years earlier.
• The added claims: ADNOC said the project will advance AI-enabled project delivery and create opportunities for UAE nationals, supporting the In-Country Value programme. It gave no figures for expected local spending or the number of jobs involved.

Background

ADNOC has routed several of its smaller onshore concessions through joint ventures with foreign partners. The Korea National Oil Corporation and GS Energy entered Area 1 in 2014, and the field reached first production five years later, in July 2019.

Between the lines

Water handling, not drilling, is the constraint being addressed here. Haliba started producing in 2019 and, as fields mature, the volume of water lifted with the oil climbs; treating and reinjecting it is what keeps barrels flowing toward the stated 50,000 bpd goal. Handing operation to the contractor under the design, build and operate model also keeps that burden off Al Dhafra Petroleum's own operating base.

What's next

Watch for a construction start date and commissioning timeline for the treatment facilities, confirmation of when Haliba reaches 50,000 barrels per day, and any disclosure of In-Country Value commitments attached to the award.

Source: Gulf Daily News / TradeArabia News Service