US company wins $350m oilfield deal in capital

Abu Dhabi Marine Operating Company has awarded a contract to McDermott International related to a master plan for raising the emirate's oil production.

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Abu Dhabi Marine Operating Company (ADMA-OPCO) has awarded a contract to McDermott International related to a master plan for raising the emirate's oil production capacity by 26 per cent. ADMA-OPCO is a joint venture that pumps crude from some of Abu Dhabi's biggest offshore oilfields. McDermott, an engineering and construction group based in Houston, said yesterday one of its units had clinched a US$350 million (Dh1.28 billion) deal to upgrade and enhance a water injection system for the Zakum oilfield off Abu Dhabi.

The purpose of injecting water into the reservoir is to push out more oil than can be achieved under natural pressure and without using scarce gas supplies. "This is a significant award for McDermott," said Steve Johnson, the president and chief executive of the US group. "We look forward to building a long-lasting working relationship with ADMA-OPCO." Zakum is one of two giant offshore oilfields within ADMA-OPCO's concession. The 60 per cent owned subsidiary of Abu Dhabi National Oil Company (ADNOC) also pumps oil from the large Umm Shaif field and has plans to develop two smaller deposits, starting in 2012.

Currently, ADMA-OPCO is capable of producing 570,000 barrels per day (bpd) of oil from the two big fields but plans to expand its total output capacity 50 per cent by 2017. "To prepare for this production increase, the company is improving capabilities in three key areas: plant hardware and equipment; software; and competent teams of professionals," Ali al Jarwan, the general manager of ADMA-OPCO, said in an independent study of Abu Dhabi's energy sector by the UK's Wildcat Publishing.

The 235,000 bpd expansion would contribute to the Government's plan to raise Abu Dhabi's total oil output capacity to 3.5 million bpd from about 2.7 million bpd in the next eight years. That would lay the groundwork for negotiations to increase the UAE's OPEC quota in coming years. ADMA-OPCO is also expected to award more than $3bn of contracts by the end of this year for the development of the smaller Umm al Lulu and Nasr fields, the Wildcat study said.

@Email:tcarlisle@thenational.ae