Backgroud

Upper Zakum offshore oil field is located approximately 84km off the coast of Abu Dhabi, UAE. With estimated proven crude oil reserves of 50 billion barrels, Upper Zakum is  one of the world’s biggest oil fields.

The giant offshore oil field covers more than 1,150km² in water depths of 6m-13m in the Persian Gulf and extends up to 8,000ft below the sea bed.

Upper Zakum is also one of the world’s most innovative offshore oil field to have adopted artificial island-based development concept, and advanced reservoir simulation and extended-reach drilling technologies to steadily boost its production capacity.

Following the discovery of Upper Zakum oil field in 1963, Zakum Development Company (ZADCO) was formed in November 1977 to develop the field, in which ADNOC held 88% interest and INPEX the remaining 12% stake.

The field was brought on stream in 1982 and has 450 wells tied-back to approximately 100 offshore platforms to attain the 500,000bpd production capacity as of 2006.

Upper Zakum oil field is owned by Zakum Development Company (ZADCO), a joint venture of Abu Dhabi National Oil Company (ADNOC, 60%), ExxonMobil (28%), and Japan Oil Development Company (Jodco, 12%), a wholly-owned subsidiary of INPEX.

The partners in ZADCO started exploring artificial island-based development options in the same year, in order to increase the production to 750,000bpd with the use of extended-reach drilling technology to increase oil recovery, while minimising infrastructure needs.

In 2010, after the feasibility study of related projects was completed, ZADCO launched UZ750 project in Upper Zakum Oilfield, which is expected to invest about US$ 21.8 billion (AED 80 billion) and comprises four new artificial islands, to accommodate drilling rigs, processing facilities and infrastructure required to handle production capacity growth to 750 mbpd, effectively creating an onshore environment offshore.

At present, the UZ750 project has entered the end stage. Most of the key facilities involved in the project have been basically completed. In the later stage of the project, a large number of production wells have been deployed to increase the output of the oilfield to 750,000 barrels per day. Meanwhile, ZADCO plans to expand the Upper Zakum oilfield to further increase its production.

April 2019, Spanish engineer Tecnicas Reunidas is understood to have been awarded a front-end engineering and design contract by Abu Dhabi National Oil Company (Adnoc) for the further expansion of its Upper Zakum offshore oil field. 

Brief Introduction

The visit follows the award, in April, by ADNOC and its joint venture partners, ExxonMobil Abu Dhabi Offshore Petroleum Company Limited and INPEX Corporation (INPEX), of a Front-End Engineering Design (FEED) contract to increase the production capacity of the Upper Zakum oilfield to 1 mmbpd by 2024.

The 1 mmbpd expansion project, which is an integral component of ADNOC’s plan to increase its oil production capacity to 4 mmbpd by 2020 and 5 mmbpd by 2030, is estimated to cost approximately US$ 8 billion (AED 29.4 billion), including drilling-related expenditure. It will capture synergies from the existing UZ750 project, optimizing costs and maximizing value for ADNOC and its partners.

As the project is in the front-end engineering design stage, the formal development work has not yet started.

Current rights and interests

Operators :Zakum Development Company(ZADCO)（ADNOC: 60% interest，ExxonMobil: 28% interest，Japan Oil Development Company: 12% interest）.

Company behavior

Tecnicas Reunidas:FEED contract for the Upper Zakum Offshore Oil Field Expansion Project.