Belbazem

Belbazem Oil and Gas Project Profile

Location

The Belbazem Oil and Gas Project is located offshore in the United Arab Emirates, approximately 120 kilometers northwest of Abu Dhabi city. The project is situated in shallow water with a depth of about 121 feet.

Project Details

• Fields Involved: The project encompasses three marginal offshore fields: Belbazem, Umm Al Salsal, and Umm Al Dholou.
• Operator: The project is operated by Al Yasat Petroleum Operations Company Ltd, a joint venture between Abu Dhabi National Oil Company (ADNOC) and China National Petroleum Corporation (CNPC).
• Ownership: ADNOC holds a 60% stake, while CNPC holds a 40% stake in the project.

Discovery and Development

• Discovery Year: The Belbazem field was discovered in 1982.
• Final Investment Decision (FID): The FID for the project was made in 2021.
• Production Start: Initial production of crude oil from the Belbazem offshore block commenced in 2024, although initial expectations were for first oil in 2023.

Production Capacity

• Oil Production: The project is expected to achieve a production capacity of 45,000 barrels per day (bpd) of light crude with an API gravity of around 35 degrees.
• Gas Production: Associated gas production is expected to reach 27 million standard cubic feet per day (mmscfd).
• Design Capacity: The overall design capacity includes 16.43 million barrels per year of oil and 279.06 million cubic meters per year of gas.

Infrastructure and Facilities

• Well Head Towers: The project includes three offshore Well Head Towers (WHTs), one in each of the three fields.
• Subsea Pipelines and Cables: Interconnecting subsea pipelines and cables will be used to connect the fields to Zirku Island, located about 60 kilometers from the Belbazem field.
• Additional Facilities: The project scope includes the development of greenfield facilities for water injection, produced water treatment, gas compression, and associated utilities, as well as brownfield works for tie-in to existing facilities at Zirku Island.

Contract and Economic Impact

• EPC Contract: The engineering, procurement, and construction (EPC) contract for the full field development was awarded to the National Petroleum Construction Company (NPCC) for $744 million (AED2.73 billion) following a competitive tender process.
• In-Country Value: 65% of the contract value will flow back into the UAE economy under ADNOC’s In-Country Value program.
• Cost Optimization: The front-end engineering design (FEED) competition among bidders optimized the project, reducing the originally scheduled tender time by up to 12 months and enabling savings of approximately $190 million in capital expenditure (CAPEX).

Technology and Operations

• Artificial Intelligence: The project will utilize an artificial intelligence (AI) tool called WellInsight from AIQ for analyzing reservoir data and managing operations to improve safety and performance.
• Advanced Technologies: The project will incorporate advanced technologies, similar to those used at the Al Yasat’s Bu Haseer offshore field, to optimize production and reservoir management.

Long-Term Production

• Peak Production: Peak production from the Belbazem Offshore Block is expected in 2025.
• Economic Limit: Production is anticipated to continue until the field reaches its economic limit in 2086.

This project is a significant step in ADNOC's strategy to maximize value from Abu Dhabi’s hydrocarbon resources, enhance energy security, and reduce the carbon footprint, while strengthening the bilateral energy relationship between the UAE and China.