Oil firm awards $1.6B contract to BGP

DUBAI - Abu Dhabi National Oil Co has offered a contract worth $1.6 billion to a Chinese company for the world's largest 3D seismic survey, United Arab Emirates state news agency WAM reported on Thursday.

Bureau of Geophysical Prospecting Inc., a subsidiary of China National Petroleum Co, won the contract for the onshore and offshore survey covering an area up to 53,000 square kilometers, the report said.

ADNOC said the contract was let as the Abu Dhabi government-controlled firm continues to explore new opportunities and maximize value from its hydrocarbon resources to deliver on its 2030 smart growth strategy.

The agreement was signed late on Wednesday by Abdulmunim Al Kindy, ADNOC's upstream director, and Gou Liang, president of BGP, according to WAM.

The signing was also attended by Sultan Ahmed Al Jaber, UAE minister of state and ADNOC Group CEO, and Wang Yilin, chairman of CNPC.

Al Jaber said the announcement of the world's largest continuous 3D seismic survey with cutting-edge exploration technologies is "an important step in realizing the full potential of Abu Dhabi's oil and gas resources as we deliver on our 2030 smart growth strategy".

The contract also represents another "milestone in ADNOC's thriving partnership with CNPC and the UAE's strategic energy partnership with China", he added.

Wang Yilin said, "ADNOC has embarked on an ambitious project to explore hydrocarbon reserves, and BGP is best placed to bring leading technology to Abu Dhabi to support this program."

Using seismic streaming vessels and ocean bottom nodes to acquire data in Abu Dhabi waters and vibrator trucks to survey onshore desert areas, the survey is scheduled to be completed by 2024, according to the report.

The UAE is a major oil and gas producer with over 90 percent of its reserves within the emirate of Abu Dhabi.

CNPC is one of ADNOC's largest global partners, with a 40-year stake in Abu Dhabi's major onshore and offshore concessions.

As the world's largest geophysical service provider, BGP is the main provider of such services to major oil companies.

Xinhua