Al Arabiya Energy Corporation has awarded a construction contract valuing $100 million to Alkam Energy to expand its Bab oilfields to add another 80,000 barrels per day or bdp output.

Alkam Energy’s will execute the EPC contract, which is scheduled to be completed at the end of 2024. Alkam’s flagship S-Lay installation vessel, the G1201, will be used for pipelaying, as well as a diving support vessel. 

General Manager Al Arabiya Energy Corporation Abdul Munim Al Kindi signed the contract for the oil company at a simple ceremony in the capital Monday, while Alkam Energy Director, Wee Hui Hock represented the firm. 

The Project aims to augment AEC’s exploitation programme from its current crude oil production of 1.4 Million Barrels of Oil per Day (MMBOPD) to 1.8 MMBOPD. To achieve this, AEC plans to increase production at existing North-East Bab oil field and to begin productions from other three new oil fields; Bida Al Qemzan, Qusahwira and Bab. 

Production at Bab field will be increased by development of the Habshan-2 and Thamama-G production zones. The expected sustainable production from these two zones is 80 MBOPD. The first production from the Bab field, located approximately 150 Km South-West of Dahran, was started in the 1960s. 

As per the contractual works, Alkam Energy will carry out engineering, procurement and construction related to production wells tie-ins and flowlines connecting Productions Wells to 4 new RDSs associated with several transfer lines. This also includes tie-ins of 54 Water Injection Wells, a total of around 950 Kms pipelines, Separators, Vessels, Tanks, Heaters, various pumps, flare stacks, chemical injection systems, air compressors, vapour recovery compressors, Nitrogen generator, DCS/ESD/F’&’G and SCADA systems, Electrical power generation including overhead lines, switchgears, transformers, UPS, etc., Valves, Telecom systems and other associated works. 

The overall project is scheduled for completion in 30 months from contract effective date.

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