Total boosted its presence in the United Arab Emirates (UAE) when Abu Dhabi National Oil Co. (ADNOC) awarded in March the French energy company a 20% interest in the Umm Shaif and Nasr concessions and a 5% interest in the Lower Zakum concession. Total paid a participation fee of Dh5.3 billion (US$1.4 billion) for the concessions, which will be operated by ADNOC subsidiary ADNOC Offshore.
Total is the largest international oil company operating in Abu Dhabi, as it also operates the Abu Al Bukhoosh (ABK) field. Production from Abu Dhabi fields accounts for about 12% of Total’s overall production, according to Hatem Nuseibah, president Total E&P UAE. ABK is where Total is testing technologies to boost recovery rates and production. Knowledge gained here could be applied to other Abu Dhabi reservoirs, including the recently awarded concessions, with similar characteristics.
“On the small reservoirs of ABK, the financial benefits from deploying these methodologies are not big; however, if the same methodologies are applied on the big fields of Abu Dhabi, then there will [be] a huge impact on the overall recovery of Abu Dhabi,” Nuseibah said. “Therefore, ABK is a sort of a pilot field for all Abu Dhabi reservoirs.”
Through its experience with the ABK Field, Total achieved excellent recovery rates and introduced new technologies in the field. The mature offshore field lies in a harsh, HP/HT environment along the economic border between the UAE and Iran. Abu Dhabi’s side of field produces oil and gas, while the Iranian side only produces oil.
Total was granted permission to develop the field in 1972. At that time, the lifespan of the field was between an estimated 15 to 20 years. But after almost 40 years, the field is still producing. Operated by Total affiliate Total ABK, and the field currently produces about 120,000 barrels of oil equivalent per day. This includes 10,000 barrels of oil per day and about 110,000 barrels of oil equivalent per day of gas.
The field has an overall recovery rate of about 45% due to the innovative technologies Total deployed at the field. Some reservoirs have a 55% recovery rate, and one reservoir has achieved a recovery rate of almost 70%. Today it produces about 10,000 barrels of oil per day (bbl/d) at 92% water cut.
The company started tertiary gas injection in the earlier 1990s and conducted the first EOR pilot project in 1992. Total has also been injecting gas in the field, conducting chemical EOR pilot projects and utilizing artificial lift.
The Umm Shaif and Nasr concession and the Lower Zakum concession were created from the former ADMA offshore concession, which Total has been a partner in since 1953. It was divided into three concession areas with the aim of maximizing commercial value, broadening the partner base, expanding technical expertise and enabling greater market access.
In the Umm Shaif and Nasr concession, Total joins Italy’s Eni, which was recently awarded a 10% stake.
The Umm Shaif Field’s Arab reservoir is characterized by a huge gas cap—one of the largest in the region— with reserves rich in condensates. Based on ADNOC’s development and initial piloting activities in the gas cap, the concession partners will pursue the technical and economic evaluation of the development. The gas cap overlays an oil rim that, in combination with Nasr, has a crude production capacity of 460,000 bbl/d.
ADNOC plans to process 500 million standard cubic feet of gas per day from Umm Shaif’s gas cap to help meet Abu Dhabi’s growing domestic demand for energy and reduce reliance on imported gas. Condensates from the gas cap will be refined to extract higher value products that can be used in a variety of petrochemical applications.
In the Lower Zakum concession, Total joins an Indian consortium, led by ONGC Videsh, Japan’s INPEX, and Eni as stakeholders. ADNOC is finalizing opportunities with potential partners for the remaining 10% of the available 40% stake in the Lower Zakum concession and for the remaining 10% stake in the Umm Shaif and Nasr concession. ADNOC retains a 60% majority share in both concessions.
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