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 exact coordinates are 25.131, 53.592 (WGS 84).

Project Overview

The Belbazem Oil and Gas Project involves the development of three marginal offshore fields: Belbazem, Umm Al Salsal, and Umm Al Dholou. The project is operated by Al Yasat Petroleum, a joint venture between Abu Dhabi National Oil Company (ADNOC) and China National Petroleum Corporation (CNPC), with ADNOC holding a 60% stake and CNPC holding a 40% stake.

Project History

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

Production Capacity

The project is designed to achieve the following production capacities:

• Crude Oil: 45,000 barrels per day (bpd) of light crude with an API gravity of around 35 degrees.
• Associated Gas: 27 million standard cubic feet per day (mmscfd).

Facilities and Infrastructure

The project includes several key infrastructure components:

• Well Head Towers (WHTs): Three offshore WHTs, one in each of the three fields.
• Subsea Pipelines and Cables: Interconnecting subsea pipelines and cables to Zirku Island, which is approximately 60 kilometers from the Belbazem field.
• Greenfield Facilities: Development of greenfield facilities for water injection, produced water treatment, gas compression, and associated utilities.
• Brownfield Works: Tie-in to existing facilities at Zirku Island.

Contractors and Partners

• Engineering, Procurement, and Construction (EPC) Contract: Awarded to the National Petroleum Construction Company (NPCC) for $744 million (AED2.73 billion) following a competitive tender process. This contract ensures that 65% of the award value will flow back into the UAE economy under ADNOC’s In-Country Value (ICV) program.

Technological Innovations

The project incorporates advanced technologies to optimize production and reservoir management:

• Artificial Intelligence (AI): Use of AI tools such as WellInsight from AIQ for analyzing reservoir data and managing operations for improved safety and performance.
• Operational Synergies: Utilization of facilities from the nearby Satah Al Razboot (SARB) offshore field to achieve cost savings and reduce environmental impact.

Economic and Strategic Impact

• ADNOC’s Targets: The project supports ADNOC’s goal to increase its oil production capacity to 5 million barrels per day by 2027 and achieve gas self-sufficiency for the UAE.
• Cost Optimization: The front-end engineering design (FEED) competition among bidders reduced the originally scheduled tender time by up to 12 months, resulting in capital expenditure (CAPEX) savings of approximately $190 million.

Environmental and Operational Efficiency

The project emphasizes environmental and operational efficiency by leveraging existing facilities and adopting advanced technologies to minimize the environmental footprint and optimize production.