Abu Dhabi National Oil Company (Adnoc) is expected to add a new oil processing train and plant to its Upper Zakum offshore oil field as part of its strategic goal to raise total production from the asset.
The Upper Zakum field, which achieved an output of 640,000 barrels a day (b/d) from an initial rate of 500,000 b/d, is undergoing a capacity enhancement drive (UZ750), which has resulted in the field producing 750,000 b/d.
Adnoc Offshore, which has absorbed erstwhile operator Zakum Development Company (Zadco), intends to raise the asset’s production to 1 million b/d by 2024.
“Train 6 will go ahead and it is hoped that it will be identical to train 5," an industry source tells MEED. "That UZ750 project might be enhanced to UZ1000, which is why I am saying that train 6 might happen."
The value of the train 6 project is estimated at about $600m, according to the source.
The scope of the Upper Zakum enhancement project originally included four main crude oil processing trains on Zirku island. Adnoc Offshore later added the provision of a fifth train to the project, the engineering, procurement and construction (EPC) works of which is being carried out by Abu Dhabi-based Chiyoda CCC Engineering Limited (CCEL).
MEED has learnt that the value of that EPC contract, which CCEL won in Q4 2017, is $400m.
“[CCEL] is about seven months into it [working on that project] now," the source says. "Everything is progressing smoothly. CCEL is the only EPC contractor for this specific project."
The source could not say when Adnoc Offshore is expected to begin work on the sixth train. CCEL hopes to complete and hand over train 5 to the client in 2020.
Adnoc is the main operator of the Upper Zakum asset with 60 per cent of the stake, US giant ExxonMobil holds 28 per cent and Japan Oil Development Company (Jodco), a subsidiary of Japan’s Inpex Corporation, the remaining 12 per cent.
In November last year, Adnoc granted a 10-year extension to the other stakeholders, stretching their concession agreements till 31 December 2051.
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