Hail Field Abu Dhabi
The Hail Field Project is an offshore oil site found about 10km south of Mubarraz artificial island, in the Arabian Gulf of Abu Dhabi, UAE. It lies in an area currently owned by Abu Dhabi Oil Co. (ADOC).
However, Hail oil field in particular was bought by Cosmo Abu Dhabi after the firm signed a 30yr ownership contract with ADOC in Dec 2012. The rig is situated close to 3 other fields which are Neewat Al-Ghalan, Umm Al-Anbar and Mubarraz.
Drilling of the site is a joint partnership project consisting of various companies. Cosmo Abu Dhabi-an affiliate of Cepsa and Cosmo Oil has 64.4pct stake, JX Nippon Oil & Gas Co 32.2pct, Chubu Electric Power 1.7pct and Kansai Electric Power 1.7pct.
Early production has already started at Hail Field, Abu Dhabi, with the Spanish oil firm Cepsa overseeing operations together with the Japanese petrochemicals company Cosmo Oil. The field is expected to attain its peak oil production capacity of 21,000bpd very soon, hence contributing to Abu Dhabi’s overall target of increasing output to 3.5 million barrels per day. Oil production officially started on Tuesday, November 7th.
Currently, Hail is the 4th offshore oil site to begin production in the area operated by ADOC. Together with the other sites which are all located in the shallow waters of West Abu Dhabi, they were opened in 2017.
Nevertheless, before its launch the development partners first had to create an artificial island through land reclamation, measuring approximately 350m by 100m. Construction works for the island involved installation of a heliport, navigational buoys, 350m sheet pile quay wall and pavement slabs.
Other facilities that were put up include 10 production wells, surface holding points and 3 subsea pipelines for connecting Hail Field’s surface facilities with other production utilities at the nearby Mubarraz site. The use of these external facilities helped minimize operational costs, and will also boost overall production volume.
Oil is currently being produced from the field’s Thamama Zone F, B and A reservoirs. Furthermore, additional gas lift and injection operations are expected to be done to further improve the overall rate of oil recovery. Experts estimate that the site will continue producing oil safely for the next 30yrs.
Hail Oil Field Abu Dhabi
Hail marks the first oil-field project to be overseen by a Japanese contractor, Cosmo, in the Middle East in 6yrs. It’s still undergoing development activities that are expected to increase production capacity and create more jobs for the locals.
Back in August 2017, KBR, Inc. announced that they were given a Project Management Services (PMC) contract by Abu Dhabi Oil Co. (ADOC), who still have a stake on the project considering its proximity to other oil drilling sites in the region owned by the company.
The contract stipulates that KBR will only focus on providing project management consultancy services for gas production at Hail Field, with the work expected to last for 2yrs. ADOC is undertaking this project in order to achieve the goal of delivering sustainable, safe and economic gas within Abu Dhabi. Together with the Ghasha project, Hail is one of the biggest sour gas production sites within ADOC’s territory. It’s expected to produce around 1 billion cubic feet of gas upon reaching its peak.
Speaking on behalf of KBR, Inc, the company president Jay Ibrahim said that they are delighted to have won the project management contract, expressing full support for ADOC’s Gas Infrastructure Improvement Plan. KBR currently employs more than 34,000 people globally, including through their joint ventures. Some of these people will find job opportunities at Hail Field, where the firm has officially been contracted to provide consultancy services.
The project was financed by various institutions including the Tokyo-Mitsubishi UFJ Bank, Japan Bank for International Cooperation (JBIC), Mizuho Bank and Sumitomo Mitsui Banking Corp. The institutions provided a total loan amount of $630m to ADOC to show support for the Hail field development. JBIC in particular provided the largest loan amount of $378m. The financing arrangement is part of Japan’s strategy of securing a regular crude oil supply in the country.
Additionally, since Hail Field Abu Dhabi is located at the UNESCO-protected site of Marawah Marine Biosphere Reserve, which has various habitats of coral reefs, macro-algaes and seagrass beds, a thorough environmental review was conducted to mitigate any potential risks before development started. The stakeholders have taken appropriate measures to ensure that oil and gas production doesn’t interfere with the natural environment.