Abu Dhabi - Abu Dhabi Company For Onshore Oil Operations.

ADCO is owned 60% by ADNOC and 40% by Abu Dhabi Petroleum Co. (ADPC) - formerly known as PD/TC. ADPC consists of BP (which in 1999 will be BP Amoco, a bigger giant), Shell and Total (which in 1999 will be called Total Fina), each holding 9.5% of ADCO; Exxon and Mobil (which in 1999 would be merged into Exxon Mobil Corp.), each holding 4.75%; and Partex 2%. ADCO has a number of fields, of which nine are developed and only three are major producers. Its sustainable capacity has risen from 860,000 b/d in 1990/91 to 1.26m b/d and peak production of its fields can go as high as 1.35m b/d. But its actual output for December 1998 and early 1999 is 920,000 b/d, raised by 10,000 b/d in October. ADCO has a new 17-storey, V-shaped HQ complex completed in early 1998. It is one of five new HQs for ADNOC and its affiliates. The others are for ADMA- OPCO, ADGAS, National Drilling Co. and a joint HQ for ZADCO and GASCO. ADCO has over 10 bn barrels of proven oil reserves spread over 10,000 sq km (almost the size of Lebanon). In 1991, the company had launched a five-year plan to expand its capacity. In early December 1993, after approval by Abu Dhabi's Supreme Petroleum Council (SPC), ADCO's board adopted a programme for its sustainable oil production capacity to reach 1.5m b/d by end-1997. Actual capacity increased to 1.275m b/d; the foreign partners did not spend as much as was required because of OPEC quota limitations. ADCO's marketable gas production capacity, after reinjection into the fields, exceeds 2 BCF/day. Murban-Bab - now known as Bab - was the first oilfield in Abu Dhabi discovered in 1954 by PD/TC. It went on stream in 1964, after long delays. Its capacity was developed in the 1970s to more than 75,000 b/d. It was closed down in 1986 and re-opened in 1989. Its sustainable capacity rose from 60,000 b/d in 1989/90 to 100,000 b/d in early 1990. Because of the Gulf crisis, ADCO quickly raised its capacity to 150,000 b/d by early 1991. This was raised to 250,000 b/d in 1993 and 300,000 b/d in June 1995 - the latter phase completed ahead of the end-1995 target. The capacity by end-1998 had risen to 330,000 b/d. Works on a water injection system began in early 1992 and, together with new gathering facilities, other installations and development were completed in May 1995. Bab is a major gas producer as well. The cost of expanding its oil production capacity from 1990 has reached about $600m. The cost of expanding its gas production capacity is expected to reach $1.5 bn. Located about 85 km south-west of Abu Dhabi City, Bab has a surface area of around 1,200 sq km. It has more than 10 oil and gas bearing zones, mainly in Thamama formations, at depths ranging from 88 to 12,000 feet. The oil is of the Murban group, as in the case of ADCO's Bu Hasa, Asab, Shah and Sahil. Bab has over 400 wells, including 128 oil producers in the upper oil zone, 20 gas producers in the upper gas zones and seven wells in the lower gas zones. The Murban blend, from ADCO's fields, is exported through the Jebel Dhanna oil terminal which has been expanded. Bu Hasa, found in 1962, is ADCO's biggest oilfield. It has been expanded from 400,000 to 510,000 b/d, under a gas injection programme for both Bu Hasa and Sahil fields. A new programme announced in August 1998 would expand the field to 680,000 b/d by 2001. A 26-inch, 15 km third transfer line at Bu Hasa is to be built. This should help maintain the field's sustainable capacity through a tie-in of infill wells. The Dutch Stork Engineering & Contractors, which in 1998 upgraded and modified the main oil lines from Jebel Dhanna to Habshan, is providing engineering and consultancy services for the third line and is due to complete its work this month. Asab, discovered in 1965, is ADCO's second biggest oilfield, expanded from 220,000 b/d in early 1990 to 280,000 b/d in 1991, 310,000 b/d in 1994 and to 330,000 b/d in 1997/98. The field is capable of 400,000 b/d peak production. Shah, found in 1966 but developed in 1990/91, was expanded from 25,000 b/d to 62,000 b/d by end-1997. Sahil, discovered in 1967 and developed in 1990/91, was being expanded from 30,000 b/d to 55,000 b/d in 1997 and to 70,000 b/d in 2001. All these fields have gas-rich Arab and Thamama formations, the basis of a major onshore gas development programme. They provide gas to local power plants and GASCO at Ruwais. ADCO's new fields, Rumaitha (found in 1969), Zubbaya (1970s), and Shanayel (1983), went on stream in mid-1994 with a combined capacity of 10,000 b/d from 10 wells to supply the Umm Al Nar oil refinery. They have a big potential and ADCO has expanded them to produce 50,000 b/d in 1999. ADNOC wants ADCO to expand them to 150,000 b/d by 2000/1 from a total of 50 wells. The fields are in the north-east of Abu Dhabi. Jarn Yaphour, discovered in 1973, was only developed in 1992/93 because it was one of the most complex fields in the industry. It is the nearest field to Abu Dhabi City, just 35 km to the south-east. It went on stream in November 1993 with a capacity of 3,000 b/d later expanded to 10,000 b/d. It produces from two wells, supplying the Umm Al Nar refinery. Another 10 wells completed in 1994 are producing 60 MCF/day of gas. Sweetened gas is supplied to a local power plant.