Lower Zakum

Lower Zakum Oil Field Profile

Location and Geology

The Lower Zakum oil field is located centrally in Abu Dhabi's offshore area, approximately 80 kilometers northwest of Abu Dhabi city. It is situated in shallow water with depths ranging from 5 to 15 meters.

The field is a massive low-relief, east-west anticline, measuring 40 kilometers in length and 28 kilometers in width. It is one of the largest offshore oil fields in the world.

Ownership and Participation

The Lower Zakum field is owned and operated by Abu Dhabi National Oil Company (ADNOC). The field involves a consortium of international partners, including:

• Bharat Petroleum
• China National Offshore Oil
• China National Petroleum
• Eni
• Indian Oil
• INPEX
• Oil and Natural Gas Corporation
• TotalEnergies.

Production and Reserves

The Lower Zakum field has a current production capacity of around 425,000 barrels per day (b/d), which is planned to be expanded to 450,000 b/d by 2025. The field has recovered approximately 55.32% of its total recoverable reserves, with peak production expected in 2028. Production is anticipated to continue until the field reaches its economic limit in 2062.

Development and Expansion Projects

Several development projects are associated with the Lower Zakum field:

• Lower Zakum LTDP 1 and LTDP-2: These expansion projects are currently in the construction and feed stage, targeting start-up between 2025 and 2028. These projects aim to increase the field's production capacity and extend its lifespan.
• New Main Gas Line: ADNOC has awarded a $548 million contract to build a new main gas line to increase the field’s gas production capacity from 430 million standard cubic feet per day (MMscfd) to 700 MMscfd. This project includes the construction of a new subsea pipeline and gas receiving infrastructure at Das Island, expected to be completed by 2025.

Infrastructure

The field's infrastructure includes:

• Oil and Gas Pipelines: The field is connected by extensive networks of subsea pipelines. A new subsea pipeline project is underway to accommodate increased gas production.
• Platforms and Facilities: The field features multiple platforms, including the Zakum West Super Complex. New platforms and gas receiving infrastructure are being constructed as part of the ongoing expansion projects.
• EPC Contractors: Key contractors involved in the Lower Zakum project include John Wood Group for design/FEED engineering, Abu Dhabi National Oil, Emdad, Rockwell Automation, and National Marine Dredging for main EPC. Other contractors include McDermott International, Lamprell, Control Contracting & Trading, and Target Engineering.

Contractors and Service Providers

Several companies are involved in the development and operation of the Lower Zakum field:

• National Petroleum Construction Company (NPCC): Awarded the EPC contract for the new main gas line project.
• ADNOC Drilling: Involved in accelerating offshore growth activities.
• ADNOC Logistics and Services: Enhancing offshore operations.
• Other Contractors: Include ArcelorMittal, Control Contracting & Trading, Amarinth, and Abu Dhabi Oilfield Services.

Economic and Operational Aspects

• Production Costs and Revenue: The field's production costs and revenue distribution are managed under detailed economic assumptions, including cash flow analysis, discount rates, and oil and gas price forecasts.
• Environmental and Regulatory: The operations are subject to various fiscal and regulatory frameworks, including royalty, capital depreciation, operating costs, and taxation.

Future Outlook

The Lower Zakum field is expected to continue producing oil until 2062, with ongoing efforts to extend its productive life through advanced recovery techniques and infrastructure upgrades. The field remains a significant contributor to Abu Dhabi's daily oil output, accounting for approximately 8% of the country’s daily production.