+ - ADMA-OPCO
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+ - ADMA-OPCO
Annual Review 2010 Annual Review 2010 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior written permission of ADMA-OPCO. Abu Dhabi Marine Operating Company (ADMA-OPCO) P.O. Box 303, Abu Dhabi, UAE. Telephone +9712 606 0000 Fax +9712 626 6005 www.adma-opco.com 2 ADMA-OPCO H.H. Sheikh Khalifa Bin Zayed Al Nahyan President of the UAE and Ruler of the Emirate of Abu Dhabi ADMA-OPCO 3 Annual Review 2010 Annual Review 2010 H.H. General Sheikh Mohammed Bin Zayed Al Nahyan Crown Prince of Abu Dhabi Deputy Supreme Commander of the UAE Armed Forces 4 ADMA-OPCO ADMA-OPCO 5 Annual Review 2010 Annual Review 2010 Contents • Foreword 9 • Vision, Mission and Values 11 • ADMA-OPCO at a Glance 13 • Corporate Governance 17 • Production Operations 23 • Offshore Drilling Operations 31 • Field Development 37 • Projects and Engineering 43 • Administrative Services 47 • Corporate Support 55 • Key Statistics 58 Sheikh Zayed Bridge, Abu Dhabi 6 ADMA-OPCO ADMA-OPCO 7 Annual Review 2010 Annual Review 2010 Foreword I am pleased to report that 2010 was another remarkable year for ADMA-OPCO with many radical changes in the strategy, structure and process of the entire system of the organization. Throughout the year, we went through an aggressive process of change which is helping us in fulfilling our shareholder’s expectations and meeting the targets of our project expansion scheme. A host of notable achievements were witnessed at various levels, despite the huge challenges that we had faced. I’m proud to say that we have successfully faced and met the challenges in carrying out our activities according to the shareholders and Supreme Petroleum Council (SPC) guidelines. We managed to achieve our KPIs in such major areas as production, drilling, technology, applying international best practices, emiratisation and people development while maintaining our high HSE performance. Special emphasis was placed on existing best practices and on new development. While considering people at the top of our priorities, we continued to offer the best recognitions and empower our employees not only to retain them but to enable them to be more productive and efficient. In fact, our professional teams generate several innovative solutions which drive our business performance. I would like to thank our shareholders for their continuing support and each and every one of ADMA-OPCO employees for all their efforts during 2010. I also encourage everyone in this organisation to continue to work with the same spirit to take our company to new levels of success. Ali Rashid Al-Jarwan Sheikh Zayed Grand Mosque, Abu Dhabi 8 ADMA-OPCO Chief Executive Officer ADMA-OPCO 9 Annual Review 2010 Annual Review 2010 Vision One integrated team working effectively to produce hydrocarbons from offshore areas, aspiring to excellence in all aspects of our business. Mission Optimising Oil and Gas production, recovery and reserves to maximise value in a safe, sustainable and socially-responsible manner through the high performance, creativity and dedication of our teams. Values Leadership People Innovation Accountability Teamwork Excellence Ethical Conduct HSE Learning Boat racing in Abu Dhabi 10 ADMA-OPCO ADMA-OPCO 11 Annual Review 2010 Annual Review 2010 ADMA-OPCO at a Glance Abu Dhabi Marine Operating Company (ADMA-OPCO) is a major oil and gas exploration and production company whose operations date back to the 1950’s. With its operations centered in the offshore areas of Abu Dhabi, ADMA-OPCO came into being as a locally incorporated company on 3rd July 1977. The company’s concession includes two major fields: Umm Shaif, which lies some 150 kilometers north-west of the city of Abu Dhabi and Lower Zakum, one of the largest offshore oil fields in the world, which lies 55 kilometers south east of Umm Shaif. The crude is collected from these fields using giant steel structures called supercomplexes, and then transferred to Das Island, a nearby industrial base, for processing, storing and world export. The company, under the SPC and the Shareholders directions, is busy preparing stateof-the-art development for the new fields to increase future production. Sheikh Zayed Grand Mosque, Abu Dhabi 12 ADMA-OPCO ADMA-OPCO 13 Annual Review 2010 Annual Review 2010 Shareholding ADNOC, which represents the Government of the Emirate of Abu Dhabi, holds 60%, while the remaining 40% is divided between BP, Total and JODCO. ADNOC60% TOTAL BP 2 14 % 3 JODCO 12 % 13 1 3 Senior Management The Senior Management comprises the Chief Executive Officer and six senior vice-presidents. Its key role is to take collective responsibility for the combined performance of ADMA-OPCO and demonstrate leadership to the organisation in a transparent and consistent manner. % bp 14 23 % ADNOC 60% TOTAL 13 13 % JODCO 12% JMC & Board of Directors The Joint Management Committee (JMC) and the Board of Directors are the highest authorities, which oversee ADMA-OPCO operations. The JMC formulates the long-term policies of investment and development, while the Board of Directors is responsible for monitoring the technical and financial performance of the Company. 14 ADMA-OPCO Board of Directors in a group photo jointly with ADMA-OPCO senior management team after their meeting at the company’s HQ ADMA-OPCO 15 Annual Review 2010 Annual Review 2010 Corporate Governance Internal Audit During 2010 the Internal Audit Division continued to provide assurance and support directly to the shareholders through the Board and to ADMA-OPCO senior management regarding the internal control environment, risk management procedures, financial and information systems, and the overall governance processes. Internal Audit specifically carried out a number of planned reviews of operational, financial, compliance and information technology areas, in addition to addressing special requests from senior management for assurance over specific business activities. The division also conducted a pan-company business risks assessment exercise during 2010 to identify and assess potential business risks across ADMA-OPCO operations. These risks were then converted into potential auditable areas, prioritized, and combined into an Annual Internal Audit work plan. This work plan was presented and discussed with the shareholders audit committee for their approval in order to ensure shareholders’ requirements are adequately addressed, as the Audit Division works independently and brings full transparency to the shareholders. Three shareholder audit committee meetings (chaired by ADNOC) were effectively conducted with members to agree on the Annual Audit work plan, approve Internal Audit resources for the coming year, and provide comments to the Board of Directors on any significant results of Internal Audit’s work. Sheikh Zayed Grand Mosque, Abu Dhabi 16 ADMA-OPCO ADMA-OPCO 17 Annual Review 2010 Annual Review 2010 Health, Safety, Environment & Quality Assurance Health Notwithstanding the very challenging HSE targets it faced in 2010, ADMAOPCO still managed to fulfill its corporate mission to be among the best HSE&QA performers in the oil and gas industry. KEY PERFORMANCE INDICATORS Continuing with its landmark partnership with the Health Authority - Abu Dhabi (HAAD), ADMA-OPCO conducted a series of Healthy Lifestyle campaigns on highly relevant topics such as Healthy Heart, Breast Cancer Awareness, Kidney Health, Anti Smoking, Obesity, Ergonomics, among others. With its aim to be a leading company in looking after the health of its employees, ADMA-OPCO initiated the groundwork on occupational health risk assessment, whereby a site specific health register will be issued to address all identified health risks at site. In line with its corporate strategy, ADMA-OPCO put forth health, safety, environment and quality assurance as the top the priority in all its business interests. Throughout the year the management and staff demonstrated full commitment to uphold HSE&QA excellence in all its activities. 1.00 0.99 LTIFR OGP ADNOC ADMA 0.66 0.50 0.34 0.31 0.30 0.25 0.55 0.50 0.23 0.24 0.39 0 0 0.23 0.00 2005 2006 4.00 3.94 2007 2008 2009 TRIR 3.05 3.00 2010 OGP ADNOC ADMA 2.68 2.08 1.98 1.87 2.00 1.27 1.08 1.09 0.79 1.00 1.38 18 ADMA-OPCO 2005 ACTUAL 0.68 TARGET HIPO 0.30 NO. OF TRIs PER 1 MILLION MANHOURS 0.00 LTIFR 100 % 4 2 1.50 TRIR 3 5.6 2 6 7 ACTUAL REPORTING PROTOCOL NO. OF LTI's PER 1 MILLION MANHOURS MMSCFD 8 4 1 5 0 NO. OF INCIDENTS 6 <1 TARGET 0 ACTUAL <1 TARGET NO. OF SPILLS FLARING GAS RELEASE 0 ACTUAL QTY (M3) SPILLS TRIR: Total Reportable Injury Rate. The number of Total Reportable Injuries (TRI) per million man-hours worked. 1.29 0.76 0.65 2007 2008 0.00 2004 NO. OF INCIDENTS 0.14 2.92 1.40 5 1.25 0.25 0.25 0.00 5 100 % 1.00 0.40 0.03 3 0.03 0.13 0.05 FATALITY 0.10 0.26 2004 Note: LTIFR (Lost Time Injury Frequency Rate). The number of Lost Time Injuries (LTI) per million man-hours worked. 0.50 0.21 ADMA-OPCO’s historical performance benchmarking against ADNOC and the Association of Oil & Gas Producers (OGP). 0.97 0.20 0.10 TARGET 1.09 0.75 0.15 2006 0.40 2009 0.57 2010 ADMA-OPCO 19 Annual Review 2010 Safety ADMA-OPCO’s collaborative culture motivated its workforce to seek creative solutions and innovative practices. This has resulted in ADMA-OPCO garnering four prestigious awards bestowed by the Oil & Gas Middle East magazine, as well as the six major wins during the ADNOC HSE Awards. By employing the best practices in its daily operation, ADMA-OPCO managed to achieve many other major successes across the company, such as the Safe Lifting Workshop, Comprehensive H2S Training, Operations Safety Campaign and Intensive Heat Stress Campaign. These proactive initiatives have increased HSE&QA awareness, ownership and accountability at all levels in the company, which was clearly demonstrated by the safe installations and commissioning of USGIF and ZK-GPF. Environment ADMA-OPCO’s special efforts on the environment were recognized and honored with three prestigious awards for environmental initiatives including the ADIPEC award for Best CSR Initiative To Phase Out Non–Biodegradable Plastic Bags. ADNOC HSE six major Awards 20 ADMA-OPCO Annual Review 2010 These awards have confirmed the company’s reputation as a responsible, environmentally friendly operating company. By initiating and following through on significant studies on Naturally Occuring Radioactive Material (NORM), Energy Conservation, Environmental Baseline and Environmental Impact Assessments, ADMA-OPCO demonstrated its commitment and confidence to move towards environmental sustainability. Quality Assurance An integrated and focused Quality Assurance function was established within the Health, Safety and Environment Division in early 2010. During the amalgamation process, a Master Quality Assurance Audit Plan was developed to be used for future material procurement, project design and implementation. Further Quality Assurance awareness campaigns are planned for ADMA’s ongoing and upcoming projects. In its quest to deliver quality product and services, ADMA-OPCO is now aimed to establish, implement, and maintain certification of Quality Management System to ISO 9001 Standards. Satah Al Razboot (SARB) Projects Satah Al Razboot (SARB) full field development has been approved by ADNOC to proceed with high priority in order to start production by early 2016. Accordingly the SARB Project Team was formed under the sponsorship of ADMA-OPCO’s CEO and the Front-End Engineering and Design (FEED) was awarded. The target is to complete the FEED activities by April 2011. The developed scheme is based on building two artificial islands for drilling instead of the conventional Wellhead Towers approach and directs the well fluid through subsea pipelines to a new facility to be installed on Zirku Island for processing, storage and export of the SARB production of 100 MBD of crude oil. An option to export crude through Jabbel Al Dhanna is being studied. This facility will also handle the Umm Lulu production of 105 MBD in addition to the Gas and Water Injection requirement for SARB Field. ADNOC is scheduled to complete the artificial islands construction by end 2012. The layout of the falcon shaped islands has been finalized and an optimum well location for drilling and SIMOPS has been identified. The current plan is to drill 44 wells from SARB 1 and 42 wells from SARB 2. The First Stage Separation study concluded that no separation will be introduced to the artificial islands in compliance with the Select Stage findings. A combined oil and gas pipeline option has been adopted and two 26 inch combined fully rated oil and gas pipelines- one from each island (SARB 1 & SARB 2) - to Zirku Island have been selected. The start-up of drilling by a new onshore rig suitable for extended reach drilling is targeted for August 2013 from SARB 1 and by January 2014 for SARB 2. The FEED is hitherto progressing as planned with several major milestones achieved. A 3D model developed for SARB project ADMA-OPCO 21 Annual Review 2010 Annual Review 2010 Production Operations Building on the successes of last year, ADMA-OPCO did well this year with respect to production and export. The company managed to meet the big challenge of achieving production targets while executing major projects. The oil production target was achieved and sustained through the year while ADGAS gas demand was met. As part of its expansion programme, a new division charged with new fields was established. Das Island Abu Dhabi Corniche 22 ADMA-OPCO Despite the huge challenges posed by the ongoing major projects, Das Division had an excellent year in 2010 in several key areas: Das Island Fire and Rescue Service (DIFS) achieved a prestigious top spot, stood first out of all 23 teams of ADNOC group of industries audited. The audit concentrated on several key elements seen as fundamental to the provision of an effective and efficient emergency response organization, these elements being planning, training, equipment and intervention. Most of the Tanker Berth #3 action items were completed including replacement of the floating hose and breakaway coupling. The Engineering, Procurement and Construction (EPC) work of relocation of a ‘finger flare’ were carried out by utilizing ADMA-OPCO’S in-house resources, and the flare was commissioned successfully. A revised strategy was implemented, through which substantial cost optimization was achieved. Work execution of some of the schemes was done by utilization of ADMAOPCO’S own resources instead of engaging an EPC contractor. ADMA-OPCO 23 Annual Review 2010 Annual Review 2010 Oil and Gas Coordination The newly adopted strategy has proved feasible and achieved the following objectives: • Positive impact on HSE and better work management. • Effective utilization of available Resources. • Effective utilization of ADMA-OPCO Project Management. • On-the-job training and enhancing responsibility/ competency for UAE CAMS Graduates. • Reducing the population on Das and service cost. In line with efforts made to ensure top performance, an external audit and benchmarking study on services provided on Das was conducted. ADNH will have completed 6 external Hazard Analysis Critical Control Point (HACCP) audits by the end of the year. Reports received are converted into action plans and the process of enhancing our HACCP system is in hand. The Das Medical Team implemented a number of initiatives aimed at enhancing medical services provided to Das residents. The most recent was the medical examination for Das based contractor employees. In line with Das Island Development (DID) continuous improvement objectives, management directives and ADNOC offshore medical fitness guidelines, Das Hospital started on 1st August doing the medical examination tests for Das based employees for better health quality control and others benefits such as cost reduction for contracting companies, better utilization of flight seats and increased man-hours. 2010 was another remarkable year for ADMA-OPCO with respect to production and export. Being the integrated part of production operations, OGCD played its role very effectively to meet the big challenge of meeting production target while executing major projects such as Umm Shaif Gas Injection Facilities Project, Zakum Gas Processing Facilities Project and Offshore Associated Gas Project. The oil production target was achieved and sustained through the year, while ADGAS Gas Demand was met. The company continued to supply Ruwais Refinery with Uweinat Condensate until July and restarted exporting it to the international market after July. These achievements were associated with reaching yearly flaring lower than the target. Das firefighting team in a mock drill Medical Services at Das Hospital USGIF 24 ADMA-OPCO Umm Shaif Field Umm Shaif Division added several chapters of success to its track record in 2010, which was a challenging yet very successful year for the division teams. Atop of the successes achieved during the year was the completion of the tie-in works in the existing facilities as part of Brownfield modifications on Umm Shaif Gas Injection Facilities (USGIF). This has been achieved without any production losses or personal injuries. The Hydro test and N2-Helium Leak check was completed, the ESD system hooked up, interface connections with the existing ESD system thoroughly risk assessed and successfully tested. ADMA-OPCO 25 Annual Review 2010 Annual Review 2010 Zakum Field The Accommodation Platform remained serving nearly 160 persons of project and operation teams, and the commissioning activities were in progress for the start up of the separation platform followed by the gas compression platform. The GG-II Slug Catcher, CSP Separator 3 and WIP Module 5 major overhauls were completed for all the equipment safely and according to the plan. The Umm Shaif Existing Accommodation Platform (USEAP) defective boatlanding was replaced with a new one successfully, in spite of all constraints of chopper movement and refueling. As part of the Wellhead Tower maintenance campaign, six towers were completed. Greasing, integrity test and repairs were carried out on Christmas tree valves. Oil Radials intelligent pigging was executed on 14 lines with minimum business interruption. Other notable achievements included completion of eight mechanical hook ups, combustion inspection and ventilation ducts, replacement of Gas Turbine 1 (GT-1), Power Generation Platform (PGP) power system upgrade and switching of five US GDP Towers to the new SCADA System. UAP (Umm Shaif Accommodation Platform) was fully commissioned. CSP-1 (Collector Separator Platform1) was commissioned and hydrocarbons introduced. CP-1 (Compressor Platform1) systems final commissioning and testing is still ongoing. Zakum Field had a busy year with many challenges at the level of gas handling, including heavy lifting and installation activities. A new platform was added to the already existing 9 Gas Processing Facility (GPF) platforms on ZWSC. Already installed and commissioned, the new platform will enhance the capability to capture associated gases, process them and compress them for injection into reservoir or sending to Das Island. Intelligent pigging was conducted on several oil gas and water lines. Young nationals receiving training The new aluminium Helideck on Umm Shaif Zakum Power Generation Plant 26 ADMA-OPCO The foam fire fighting systems on ZAP and ZWAP helidecks were renovated and commissioned. The power system was upgraded and commissioned. The scope of work focused on the integration between the Power Generation Plant (PGP) and the Gas Gathering (GGII) power generation sources to optimize power distribution, availability and enhance reliability of supply to all consumers including the new GPF. New wellhead towers were equipped with telemetry services to allow more efficient operation in order to operate wells remotely day and night, and thus reduce production losses. ADMA-OPCO 27 Annual Review 2010 Technical Support The Technical Support Division (TSD) scored a number of achievements including introduction of new technologies and carrying out major overhauls on different facilities. Hi-tech Multi Phase Flow Meters (MPFM) were ordered for installation on Wellhead Towers (WHT). Twenty will be installed in both US & ZK fields on selected WHTs. These meters will cater for accurate determination of oil, water and gas production rates for oilfield management and optimization without the need for test separator or test vessel. The timber helideck was replaced with aluminium helideck. The advantage of aluminium helideck is multi folded such as increased fire protection, light weight, reduced maintenance requirements and ease of installation. Major overhauls were conducted on sixty vessels at Gas Treatment Platform (GTP) at USSC, three separators at USSC and 2 slug catchers in ZWSC. Overhaul of two power turbines at GGII and Zero Time O/H of 2 AVON engines was completed. Annual Review 2010 Efforts were made to minimize the adverse impact of vessels swapping on well testing achievements. Vessel outage was drastically reduced from original 30+ days to 17 days. Other key milestones included Collector/Separator Platform (CSP) Slops tank interim replacement, mobilizing new boats Esnaad-950 and Esnaad-951, High Risk Boat Landing replacement and repair in both US AND ZK Fields and minimizing adverse impact on Well testing during swapping of Test Vessels. The replacement of RTU and the SCADA Control System at Zakum Central Super Complex is in progress. The existing system is obsolete and system failure will cause non-availability of plant operation, resulting in production loss. The site installation/commissioning was planned for 4Q-2010. The total cost of implementation is US$ 1 million. A total of 14 US infield oil pipelines were released for for intelligent pigging. Done with major interfaces for preparation, facilities shutdown, de-oiling, and re-commissioning, this is the first time in the history of the company that such a major campaign was accepted as a challenge and achieved. Wellhead Tower Maintenace campaign in progress 28 ADMA-OPCO Integrity Management The Integrity Division was re-organised with a focus on moving the overall approach from the current “Reactive” situation to the “Calculative” region with the aid of important activities such as the Corrosion Management Strategy (CMS) Campaign, HSE Critical Equipment Systems (HSECES), the Integrity Management Framework (IMF), Remaining Life Analysis (RLA) and the Integrated Document Management System (IDMS). Several projects were implemented by the division within the context of its KPIs, primarily the re-planning of the subsea activities by adding additional vessels and expanding the working hours. A special emphasis was laid on rising to the challenges of promoting, achieving and sustaining the operational and integrity excellence of the company’s facilities throughout their full-life cycles. The Integrity Division provided support to Umm Shaif Gas Injection Facilities (USGIF), Zakum Gas Processing Facility (ZKGPF), Integrated Gas Development - Habshan (IGD-HAP) and to the new projects: Nasr Field & Umm Lulu Phase 1. A pilot survey of robotic techniques was implemented for the crude oil storage tank (COS TK19). A new technique to inspect internal tubes was also implemented. In terms of intelligent pigging, 52 subsea lines were completed during the year. New Fields The New Fields Division was established within the Production Business Unit. The objective is to provide operational readiness assurance of the new fields. Its responsibilities also include helping to prepare operating and maintenance philosophy manuals as well as HSE. Once the facilities are fully commissioned, the division will assume management responsibility for their ongoing operations. The current organizational units under the division include Operations, Projects Operations, Support and Planning and Administration Teams. Technicians monitoring Zakum Plant operation ADMA-OPCO 29 Annual Review 2010 Annual Review 2010 Offshore Drilling Operations The Drilling Division carried out a number of successful projects and introduced the latest technologies and best practices as part of its plan to cope with the fast pace of project expansion in the company. The Brine Mixing Plant Project was created with the objective of being an optimization of the transportation and logistics network. The approach that ADMA-OPCO took to gain maximum benefits from the project involved HSE, logistics, technical and operational aspects, serving the directives of ADNOC and Shareholders to reduce the operational cost. This project is the first of its kind in this region. The Drilling Operations Reference Manual (DORM) was developed as a result of ADMA-OPCO’s initiative to unify and standardize operations throughout the organization to ensure smooth and integral well-site activities. The Drilling Safety Reference Manual (DSRM) was instigated from the initiative to update the existing Drilling Safety Instructions to ensure safe drilling operations and well site activities. Meeting a challenging objective that has been strictly set on ADMA-OPCO business plan to successfully execute the drilling of gas wells as part of ADNOC Integrated Gas Development (IGD) project was a key milestone. The IGD wells are a network from the wellhead towers to the gas processing plant. Currently the drilling of the third well is in progress and all 3 wells are expected to be online by June 2011. Sailing race in Abu Dhabi 30 ADMA-OPCO ADMA-OPCO 31 Annual Review 2010 Annual Review 2010 Logistics Supports A new technology, the Inflow Control Device (ICD) was introduced. Designed to equalize longitudinal flow along the entire production/injection profile, regardless of permeability variation and location in the well bore, the application of such technology is ideal in open-holes. Another new technology, the Self Healing Cement System was introduced. The Logistics Division continued to provide high levels of service to all ADMAOPCO asset units and divisions, extending all kinds of relevant support to all offshore sites to ensure the successful operations of all the company activities during the year. Nitrox Diving Technique on board Mooring Vessels was implemented and ADMA-OPCO is considered the pioneer of this techinque in the offshore industry, in the GCC. Tanker Berth-3 was upgraded. Seventeen sections of floating hoses, two breakaway couplings, six sections of subsea hoses and two expansion joints were replaced. This system reacts with oil or gas leaking through swelling up and creating a solid barrier. This type of cement reacts automatically with the problem at hand and without requiring any human intervention. The Drilling Division also made several other notable achievements including introduction of Hazards Identification-HAZID Photo Project, In-House Modification of Quick Drilling Flange (QDF), and Microscopic First Time Application in ADMA US 36 to aid in fracture identification and well replacement. Rig Al Yasat 32 ADMA-OPCO To further enhance safety procedures and improve Lifting Operations at Offshore Locations, a Lifting Awareness Campaign was organized. The campaign was conducted in ZWSC and USSC in July. Organizational Re-alignment of Mussafah Base Services was succesfully done in July. Non-Productive time due to rigs waiting on supply vessels was maintained below the KPI target level. (Target 0.75 day per month - Actual 0.6 day per month). A tug boat towing a crude oil tanker at Das Harbour ADMA-OPCO 33 Annual Review 2010 Petroleum Engineering As part of the integrated team spirit of ADMA–OPCO in striving towards excellence, PED is working hand in hand with other divisions both in Abu Dhabi and offshore in reaching the company’s vision of well brown and acceptable Integrity Management of all ADMA-OPCO wells. Major contributions of the petroleum disciplines have ensured achieving preset and agreed upon objectives and associated deliverables in a safe manner which has been reflected in the HSE performance of the division. Major highlights of the year were completing ADNOC ABK Pre-Khuff well casing design, Hydraulic Fracturing study and well testing strategy. The Memory RPM log was implement, this being first time worldwide that it was successfully run. Moreover “Memory Coiled Tubing PLT” was successfully applied for the first time in ADMA-OPCO. Among other successes achieved by the division are the design completion of the US Khuff Gas Producers; the ML-TBS feasibility study for Well US 51.6/48.4 Dual Gas Injection Well US 54.8/41.6; the casing design and hydraulic feasibility study for ADNOC ABK Pre-Kuff Deep Exploration Well; and the development of the well testing strategy and outlines. Annual Review 2010 A new completion perforations and stimulation approach was finalised on Well US 99, resulting in 5,000 BOPD and enhanced recovery in tight reservoirs. Pressurized gas and liquid samples were collected for the first time in ADMA-OPCO from the Gas Tower Test Separator on US 216 and a single Well Chemical Tracer job was completed on Zakum Well ZL-314. Zakum Plant 34 ADMA-OPCO Reservoir Technology The RTD was active in several areas with a focus on reservoir analysis and evaluation and operations related geology, achieving many milestones in key areas. The division prepared, issued and started implementation of new contracts for Drilling and Logging While Drilling (LWD) activities. This was successfully achieved jointly with Drilling and Commercial divisions. A new tender for Wire Line Logging activities was jointly prepared and issued in coordination with the Commercial Division. Tender submissions were received from three vendors for ADNOC & OPCO’s Corporate Data Management Application project. Live demonstrations by all vendors were conducted and technical evaluation phase was completed successfully. 3D structural models of Umm Lulu & Nasr fields were built and used for geological prognosis, casing/completion design and cost calculation and duration. A new procedure using the latest 3D structural modelling was established to apply quality control and validate all geological prognosis and proposed trajectories before finalizing. Other notable achievements of the division included optimization of both well placement and cost by utilizing the latest 3D structural model, updating of Real Time Operations Centre (RTOC) model and successful organization of 2010 Geosciences Exhibition. Umm Lulu-3D seismic survey ADMA-OPCO 35 Annual Review 2010 Annual Review 2010 Field Development Leading the long-term development plan of ADMA-OPCO hydrocarbon from both the developed and new fields, the field development units enhanced their efforts to adopt a balanced method based on organization, people and technology and managed to stay focused on delivering strategic milestones and KPIs. Zakum Field Development The Field Development Division of Zakum Field managed to reach key milestones in several areas including well review, enhancement of Effective Capacity model, and reservoir studies. Various development options were optimized in terms of resources availability and incorporated into the 5 year business plan. Additional options were also evaluated by full utilization of gas and application of artificial lift. All problematic wells were reviewed by a multi-disciplinal/multi-divisional team and workover plans were submitted for the additional rig requirement. Gas/oil ratio (GOR) management strategy and implementation plan were supported by 2010 Field Development Sub-Committee (FDSC). Pilot test for 11 strings commenced and comprehensive evaluation is in progress. The Grand Mosque, Abu Dhabi 36 ADMA-OPCO New Thamama V geocellular model was constructed based on the new rock type definition. A specialized CO2 Enhanced Oil Recovery (EOR) study was jointly started between ADMA-OPCO and JODCO. The aim is to evaluate feasibility of CO2 EOR for Thamama Reservoir. Laboratory tests including slim tube and swelling test were conducted. ADMA-OPCO 37 Annual Review 2010 In order to reflect outcomes from Thamama IV Gas Injection pilot into the gas-base development option for long term development plan comprehensive evaluations were conducted. As part of ADMA-OPCO’s medium term plan, Lower Zakum Reservoirs will contribute 25% of the production capacity enhancement plan. Annual Review 2010 Thamama IV & V reservoirs will be upgraded in order to reach 425 MBD by 2015. Umm Shaif Field Development A number of projects such as upgrading water injection capacity, gas injection capacity and drilling of new wells are underway. Subsequent to the medium plan a long term development plan is elaborated in order to extend plateau rate and maximize recovery factor. Undeveloped Reservoirs (UDR) The Field Development Division (US) continued to work toward achieving ADMA-OPCO short, medium and long term business objectives in the following areas: As part of integration strategy between Arab and Undeveloped Reservoirs, the development of Lower Araej reservoir was accelerated. The development of both Upper Araej and Uweinat reservoirs was accelerated on a priority basis, which was supported and approved by the Shareholders. This effort will add additional 20 to 25 MBD oil production to Umm Shaif total production. Subsurface Select Development phase was completed with recommendation to develop Thamama into two phases to enhance production. Khuff Reservior A Gas Deliverability Assurance study was conducted to provide assurance on the delivery and the sustainability of 1.4 Bscf/d gas production plateau from Khuff reservoir starting from 2013 for Abu Dhabi onshore gas supply. A new seismic interpretation was carried out to be used for the next Khuff model generation. Khuff 2011 business plan was carried out and consequently will be used to update ADMA-OPCO gas master plan. Difference sensitivity runs were carried out to improve the Khuff production plateau. The Well Value Assurance (WVA) Appraise / Select Phase for US 318 and US 40/32 was completed. Arab Reservoirs Full assessment of the High Gas Oil Ratio (HGOR) strings in Umm Shaif Field was carried out to investigate the impact of Gas Oil Ratio (GOR) relaxation on the Arab C&D development, which was approved by the Shareholders. Relaxation of GOR was implemented in a pilot of 5 HGOR wells and monitoring opened. An evaluation plan was developed and executed. The undeveloped oil was successfully targeted especially in the western and southern part of the field where the top interval of D2 reservoir (tight zone) was found unswept in shown flooded areas (added 3500 BPD from 3 wells at low sea line pressure). Additionally, tight zones B2 (1000 BPD from one well) and C1& C2 (1000 BPD from one well) were properly completed. 38 ADMA-OPCO ADMA-OPCO 39 Annual Review 2010 Annual Review 2010 Information Technology As part of ADMA-OPCO’s quest for excellence in technology, the Information Technology Division (ITD) continued to acquire the latest technologies to provide support for existing mainframe applications and improve its services. A new system for Shareholders e-Approval was introduced according to Shareholders request and will be applied to all contracts/procurements that worth greater than US$ 2 million. This system will allow Shareholders to vote according to their shares and provide comments and feedback. An AEC was developed to include new production facilities including Offshore Associated Gas (OAG), Gas Injection Facility (GIF) and Gas Processing Facility (GPF). Introducing these facilities will help in ensuring the most accurate and realistic production forecasts. A Drilling Lessons Learned system was developed with the aim of bringing together any lessons learned during a drilling activity project on a well, which can be usefully applied to another well. The division also introduced a new e-Tendering System through which the Commercial Division will be able to communicate with the vendors/contractors selected to bid for ADMA-OPCO tenders through this online system. The Information Security Infrastructure was enhanced by implementing integrated security systems that put together a strong information security layer of defense that helped to mitigate the continuous up-and-coming cyber threats. This has contributed to the achievement of completing nine years without having virus outbreaks in ADMA-OPCO. 40 ADMA-OPCO Telecom on Das Island Das Island Central Control Room ADMA-OPCO 41 Annual Review 2010 Annual Review 2010 Projects and Engineering While endeavoring to meet the considerable challenge of doubling production and consequent increase in projects, Projects and Engineering succeeded in reaching a number of targets throughout the year. Brownfield Projects Yas Hotel 42 ADMA-OPCO The Brownfield Projects Division made numerous milestones in its endeavor to meet the considerable challenges of the major increase of projects portfolio and increasing production challenges. Coordination and alignment continued with stakeholders and Shareholders to achieve the 4 delivery points for 100 MBD Program in the ADMAOPCO business plan. A total of 24 Lines were replaced in Umm Shaif Field. All the 24 new Water Injection lines (20 Nos. in ZK; 4 Nos. in US) along with associated topside modifications for 30 WHTs in both Fields were fully commissioned in May and are currently in service. Several successes have been achieved atop of which come the provision of permanent power to the USGIF and GPF projects, and the commissioning and startup of the new Collector-Separator Platform on Umm Shaif Supercomplex. EPC contracts were awarded for the De-mothballing Project worth $ 350 million and ZK Water Injection Upgrade project. And the division has introduced an effective EPC technical evaluation process that has been successfully applied to the ZK WI project. Several miletones were made in the Buried Pipe work project including completion of 3.31 million safe man hours without LTI, succesful completion of the 1st common suction header, the first stage of 12 fill lines and the suction line for Tank 17 and Tank 18. The BPD achieved 1.7 million safe man hours without LTI at divisional level from January to July. In terms of career development of nationals, the BPD integrated many young graduates into live projects to grasp practical experience on various activities. ADMA-OPCO 43 Annual Review 2010 Major Projects The Major Projects Division succeeded in delivering its key performance indicators (KPIs) in 2010. The Gas Processing Facility (GPF) Deck float over installation was completed in May. The bridges were also installed in this major Zakum Field project. Annual Review 2010 The handover of Umm Shaif Gas Injection Facilities project (USGIF) WHT US272 was completed. USGIF Project Brownfield E&I shutdown scope was successfully completed. The 46” IGL pipe laying from Das Island to Umm Shaif Field which is part of the Habshan Integrated Gas Development (IGD HAP) project commenced. Also within this project, fabrication of HAP jacket was completed ahead of schedule. Discipline Engineering The Discipline Engineering Division continued to provide specialist engineering input, Gulf were developed. The criteria will provide ADMA-OPCO with a rational means, works closely with various project management consultants. structures. An Innovative Subsea Cooling Technique was introduced. ADMA-OPCO was the reliability of the gas injection compressors dry gas seals. The division completed HAZOP ADNOC-CAMS framework development for offshore structures to enable development of often innovative, to Major Projects, New Fields and Brownfield Projects delivery teams and The DED won a 2009 Innovation Award for implementing a modification which improved revalidation of all ADMA facilities, a major step towards updating Process Safety critical documentation and compliance with ADNOC Health, Safety and Environment Critical Equipment System (HSECES) code of practice. Buried Pipelines project on Das Island 44 ADMA-OPCO The new GPF platform now installed in Zakum Structural regional acceptance criteria for existing fixed offshore structures in the Arabian consistent with international best practices, to assess the fitness-for-purpose of these awarded Winner of ADNOC HSE Awards for the subject submission. DED developed the young UAE nationals to be offshore structural engineers. The division had also led several in-house Select Engineering of pipeline projects on a fast track basis and produced the highest engineering quality. Young female graduates getting first hand training at Zakum Plant ADMA-OPCO 45 Annual Review 2010 Annual Review 2010 Administrative Services The Administrative Services carried out its role of extending support to all Company divisions as well as suppliers and contractors successfully, scoring many milestones. Human Resources The Human Resources Division continued to play a pro-active role to create a professional, fair and innovative working environment. To this end, a process for identifying and developing internal personnel with the potential to fill key or critical organizational positions was introduced. This is an essential part of an organization’s ability to reduce risk, create a proven leadership model, smooth business continuity and improve staff morale. A new advanced time keeping system was launched in the HQ, Al-Gaith and Al-Masaood towers in October in collaboration with GSD and ITD. Employee’s revised Handbook and Personal Policy Manual were published. Initial submission and follow up reports were submitted for Shaikh Khalifa Excellence Award. An enhanced recruitment process, which is aligned with the 2011 Budget was implemented. Other achievements included completion of the new Contractor Record System, developing of a process to enhance the quality of HR data and reporting, and developing and implementation of Strategic Framework for Capability Management. Sheikh Zayed Grand Mosque, Abu Dhabi 46 ADMA-OPCO ADMA-OPCO 47 Annual Review 2010 Manpower Development The Manpower Development Division (MDD) played a key role in helping the company with regard to implementing workforce empowerment policies and programmes. A major “Quality Improvement Review Project” was established. A ‘Process Transformation’ exercise for aligning ADMA-OPCO Competency Assurance Assessment was introduced. The division managed to achieve the stretch KPI’s with ADNOC in relation to the people development which resulted in having no single graduate behind schedule for the last 44 months. A total of 330 fresh employees were developed and 90 employees were targeted to be integrated in their established posts. About 1100 Assessment & Verification events were carried out. CAMS Process & Methodology was extended to cover 21 posts within ADMA-OPCO. These new practices were shared with ADNOC and other OPCOs in the group. Within the staff promotion programme, the division unified and updated all the documents and policies of the Professional Ladder System. A competency based criteria for Section Leaders within the Administrative Services targeting Grade 15/16 was established. Annual Review 2010 In line with ADNOC’s national employees development programme, the assessment and verification for CAMS Graduates in Assignment #3; Assignment #4 was completed. A look-ahead planning tool for CAMS graduates was developed. The “Cross Site Panel Verification” for all CAMS Site based Supervisors & Das Engineers was implemented. The “Grade Range” for all “job families” was updated and published on a priority basis. To facilitate statistical studies and trend analysis that will have strategic impact on the manpower development activities, the PL database was developed. The MDD continued to arrange training for company employees in different disciplines and topics. Future Leaders Conference 48 ADMA-OPCO Commercial The Commercial Division continued to fulfill the contracts and procurement requirements of the end-users. More than 354 contracts were handled for a total value of US$ 1,517 million including amendments and extensions. Around 3,628 standard and release purchase orders were handled with a total value of US$ 84 million. A total of 6,458 items were covered under purchase agreements with a total value of US$ 110.3 million. As of end December, 2010 ADMA-OPCO Stores Stock total value was US$ 215.7million. A noticeable improvement in inventory availability (around 97% overall service level) was also achieved. In the area of material operations and warehouse functions, structures, processes and procedures were implemented and action plan for implementation of the Warehouse Tracking System was developed. A total of 16,908 items (US$ 116 million) was received and 19,329 items (US$ 210.9 million) was issued. As part of the company’s cost optimization initiative, major contracts are reviewed on continuous basis and the cost optimization strategies are formulated on case by case basis. A demonstrable saving of around US$ 76.52million was achieved from contracts. The division has achieved savings of approximately US$ 15 million since January 2010 as a result of reviewing user requirements. Other achievements included the implementation of enhanced e-Registration system, the implementation of e-Tendering system and completion of satellite sub-stores in Maximo for Zakum & Umm Shaif fields. Stocktaking at ADMA-OPCO Commercial Stores at Mussafah Base ADMA-OPCO 49 Annual Review 2010 Finance The Finance Division has gone through a number of system transformations to improve the Company’s financial management and controls. A new Self-Billing Contracted Manpower system was introduced in ADMAOPCO. The system does not require submission of suppliers invoice, and could generate its own bills based on the contractual terms and rates, resulting in more accurate and timely payment. Another new software, the ‘Iclick System’, was introduced to provide ADMAOPCO senior management with the latest information on the Budget vs. Actual Expenses and Invoices Aging reports status on monthly basis, just with a simple finger click. Annual Review 2010 The Shareholders Cash Call & Forecasts Requirements process was implemented. The monthly financial e-reporting KPI was achieved to provide all monthly reporting to end users electronically to ensure fast and swift access to information. A new report was designed and developed to show full information of the project including future phasing. To provide up-to-date commitment information to end user, a new software- the ‘Alternate Commitment System’ was designed and developed. The payment process through cheques had been revamped and replaced with Bank Transfer to ensure more efficient and convenient financial services to the beneficiaries. Public Relations In 2010 the Public Relations Division maintained its edge in best practices using all available and relevant methods to disseminate positive messages about its businesses, services and overall image to its employees, stakeholders, suppliers, and other members of the community; i.e. to make everyone think favorably about the company and its offerings. Reckoned one of the best achievements of the PRD over the recent years, the Information and Multimedia Center (IMC), formerly known as ADMA-OPCO Library was opened in 2010. IMC now includes more than 192 learning programs, 8000 books, 5000 standards, 2000 videos, 900 entertainment films and subscribes to 500 titles of periodicals. A project is underway to digitize in excess of 45,000 images at the IMC’s photographic library; these photos document the history of ADMA-OPCO in particular and the history of Abu Dhabi in general. The Corporate Social Responsibility portfolio has been added to the PRD responsibilities in 2010, further enriching the scope of activities performed by the division, primarily the financial and social assistance offered to universities and educational centres such as Zayed University, UAE University and the Higher Colleges of Technology. The PRD has been especially active with events both internally and externally where it cooperated with other divisions in best portraying the image of the company. Within this context, the PRD played a key role in supporting the inhouse exhibitions, workshops and campaigns while it continued to fully support ADNOC Group of Companies’ participation in international events held in the country and abroad, including ADIPEC 2010. One of the top highlights of 2010 was PRD’s move to the HQ on Abu Dhabi Corniche in a move meant to create a more comfortable and convenient working environment. A media relations strategy has likewise been developed to institute new ways of setting up a two-way flow of information and understanding with different segments of the society. HE ADNOC Deputy CEO exploring the WFES exhibits 50 ADMA-OPCO ADMA-OPCO 51 Annual Review 2010 Annual Review 2010 General Services The General Services Division continued to provide services geared to meet the needs of the company and its employees, including accommodation, travel and immigration and office services as well as ensuring the safety and security of the staff and the buildings. One of the major achievements scored by the division was the New Time & Attendance System that came into operation on October 3rd. GSD along with the Information Technology and Human Resources divisions launched the new biometric based system which uses a combination of fingerprint and bade facilities. The furniture replacement in the H.Q. was completed on floors 3, 4, 6, 17, and 18. A new On-line Stationery & Mini Asset System through Maximo was also launched in May, replacing the usage of the hard copy stationery request forms, an effective move which has eliminated the company’s dependence on paper work for this function. Implementation of a new contract with Abu Dhabi National Hotels Company and closing of the old contract with the National Corporation for Tourism & Hotels were carried out smoothly without any disruption of normal operations. New contracts were signed with hotels in Abu Dhabi with effect from 1st July 2010, achieving a saving of of $1.3 million. The division played a major role in securing the Emirates Energy Award through the efficient operation of the HQ which resulted in reducing power consumption by approximately 27%. Legal & Insurance The Legal & Insurance Division continued to provide legal advice to various divisions of the company, effectively assuming its role as an advisory body within the framework of the overall pan-company services. A number of major tasks were performed, including the revision of the standard service order terms and conditions, which replaced the existing document; and an awareness campaign on the legal issues related to environment, featuring presentations titled “Legal Perspective of Environmental Issues in Oil and Gas Exploration and Production”. The division provided technical professional advice on all insurance matters across all company business units and insured several key projects, including the Integrated Gas Development project and Zakum Central Super Complex Demothballing project. Around 25 small scheme projects were insured separately besides renewing all the arranged direct insurance policies. In the areas of business agreements, the team members concerned continued to provide the necessary legal advice to General Management on a wide range of activities, including intepretation of the governing laws and agreements. In this respect, several agreements such as the Operating Service Agreement for Gas Processing Facility (GPF) and agreements on the New Field Projects, particularly NASR and Umm Lulu fields were drafted and negotiated. CEO receiving The Emirates Energy Award from H.H. Sheikh Majed bin Mohamed bin Rashid Al Maktoum 52 ADMA-OPCO ADMA-OPCO 53 Annual Review 2010 Annual Review 2010 Corporate Support Driving technical excellence across ADMA-OPCO business, Corporate Support continued to lead change interventions, ensure effective organizational capabilities and maintain a communication process for continuous performance improvement. Business Support The BSD has made remarkable efforts during the year to ensure the best possible performance by all divisions in line with the strategy under which the company organization has been revisited to assess optimum establishment levels and cater for the rapid growth of ADMA-OPCO’s business and projects. During 2010 the results of MAXIMO online survey and benchmarking were concluded. The results indicated a very positive shift in end-user acceptance since 2005 from 49% to 61% and the knowledge results were evidently improved. The “Best Initiatives” Scheme was developed and launched. The organization of Production Divisions was reformulated to cater for increased major development projects and new offshore facilities. The revised structure included the establishment of the New Fields Division. An integrated and focused Quality Assurance (QA) system was established and aligned with the HSE organization. ADMA-OPCO employees taking part in Walk UAE at Yas Circuit 54 ADMA-OPCO ADMA-OPCO 55 Annual Review 2010 Annual Review 2010 Performance Improvement Team (PIT) Transformation of ADMA-OPCO Management Team Designations was a result of a revised model for Senior Management Designations introduced to align with the corporate management titles within ADNOC Group and the global oil & gas industry. The titles of Chief Executive Officer, Senior Vice-President, and VicePresident replaced the previously used corporate management titles. As part of efforts to enhance business processes, a mechanism has been established to administer execution of “Provisional Sums” that caters for requirements of items which cannot be estimated with sufficient accuracy at estimation stage. Accountability Workshop organised by the Business Support Division Innovation Trophy Enterprise Resources Planning Custodian Team (ERPCT) The ERPCT was actively involved in several activities. In the first three quarters of 2010 the team conducted 35 MAXIMO training sessions using internal resources. The sessions were attended by nearly 260 employees. This brings the total since the start of the programme in 2006 to nearly 250 sessions and 1850 trainees. The PIT was involved in several activities including the Leadership Conference 2010 in February and the Innovation Award Scheme 2009 was fulfilled in April by the awards ceremony. 56 ADMA-OPCO Corporate Planning The Corporate Planning Division (CPLD) developed the 2010 Business Plan to be endorsed by Shareholders. The communication process for the Business Plan was improved to include for the first time a Business Plan Awareness presentation to fully inform and engage all the divisions both onshore and offshore. Pre-project studies for major development projects are normally executed through external consultants. The Zakum Barren Tower study was conducted utilizing inhouse multidisciplinary resources. This approach achieved significant cost and schedule savings enabling earlier incremental Zakum field production and was recognized by ADMA-OPCO Management and Shareholders. The CPLD deployed the Shareholders Action Tracking System. The system tracks key actions and commitments and updates Shareholders regarding the status of these issues. The following key pre-project studies were successfully completed, approved by Shareholders and handed over to Brown Fields Division for project execution: - SELECT Stage Study: USSC /Das CTU Debottlenecking for 1 BCFD Gas production. - SELECT Stage Study: 4 New Gas Injectors in Zakum Field (+100 mbd). - Availability / Reliability Study: Umm Shaif high pressure gas system. - Replacement of Critical Water Injection Pipelines in Zakum Field. The CPLD, in cooperation with Das Island Division, updated the design and content of the Das Master plan that ADMA-OPCO and ADGAS use to jointly manage the development of Das Island. Centre of Technical Excellence The Centre of Technical Excellence is a corporate function that acts as a “Think Tank” to assist the Company to excel and support it in developing a proactive culture to drive the business to excellence. To put the new Management Excellence Model into Operation, multiple offsite workshops were held to prepare the foundation for the strategies and activity plans that form our business plan and budget. These sessions kicked-off the Business Planning cycle for the next 5 years. The centre led jointly with the taskforce the development of a strategy for the Digital Oilfield, fundamental requirements, as well as the network bandwidth requirements. Human Machine Interfaces standard for control rooms was presented to the Intelligent Oilfield Task Force. One of the Centre’s main functions is the Corporate Technical Assurance through assessing the organization’s technical capabilities, identification of areas that need enhancement and follow up to delivery. This was implemented in two main technical areas namely Subsea Pipeline Capabilities and Well Integrity Management. The Centre championed jointly with the Integrity Division the development and rolling out of the Corrosion Management Strategy together with an awareness campaign. During 2010 the company applied for the Sheikh Khalifa Excellence Award which is designed to provide organisations with a road map to help them improve their performance, to support a healthy economy and to unify their management practice in a balanced holistic model. ADMA-OPCO 57 Annual Review 2010 Key Statistics Drilling Performance Crude Oil Export Destination: Japan Philippens 1.19% Pakistan 0.73% New Zealand 1.85% Singapore 1.97% S. Africa 1.34% New Zealand 1.85% Thailand 3.04% China 9.84% India 5.68% US Crude S. Korea 6.96% Japan 67.40% New Zealand 2.09% Philippines 8.16% Japan 29.67% S. Africa 1.25 S. Korea 21.57% India 15.33% Australia 0.71% China 5.97% ZK Crude Singapore 14.42% Thailand 0.83% ADMA-OPCO Drilled wells 18 Operations Rigs: 1,708 days of operation Barges: 258 days of operation Pakistan0.73% Philippines1.19% Safety 2.3 mm Man hours without LTI Singapore1.97% Risk Rank-1 Successfully secured 6 wells S. Africa 1.34% S. Korea 6.96% Thailand 3.04% China 9.84% India 5.68% Singapore 14.42% S. Africa 1.25% S. Korea 21.57% Thailand 0.83% Australia0.71% Training Type of training No. of Courses & Seminars UAE National Expats Total of Attendees In-house 89 106 109 215 External 96 112 39 151 Seminar & Conf. 152 182 111 293 Total 337 400 259 659 China5.97% Recruitment India15.33% Nationalization 56% Total recruitment: (Direct Hire, Secondees, Contractors in established posts) 221 Total recruitment: (Service Contractors) 329 Japan29.67% New Zealand 2.09% Philippines 58 67.40% 8.16%
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Oil and gas production comes from two major offshore oil fields, Umm Shaif and Lower Zakum, from which crude oil is transferred to Das Island for processing, storage and export. In 1962, the first ...
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