Adnoc announces first production from Belbazem offshore block

Adnoc announced on Tuesday the start of crude oil production from its Belbazem offshore block, underscoring the company’s commitment to responsibly meet the world’s growing demand for energy.

The Belbazem offshore block is operated by Al Yasat Petroleum, a joint venture between Adnoc and China National Petroleum Corporation (CNPC). Adnoc’s innovative approach in developing the block includes leveraging operational synergies with adjacent fields, artificial intelligence (AI) and digitalisation to enhance efficiency and safety while reducing emissions and cost.

Abdulmunim Saif Al Kindy, Adnoc Upstream Executive Director, said, “The start of crude oil production from the Belbazem offshore block is testament to the success of our strategic partnership with CNPC and the robust bilateral energy relationship between the UAE and China. Adnoc continues to maximise value from Abu Dhabi’s resources, while reducing our carbon footprint to ensure a secure, reliable, and responsible supply of energy to customers locally and internationally.”

Production capacity at the Belbazem offshore block is set to progressively ramp up to 45,000 barrels per day (bpd) of light crude and 27 million standard cubic feet per day (mmscfd) of associated gas, contributing to Adnoc’s target of reaching 5 million bpd by 2027 and enabling UAE gas self-sufficiency for the UAE.

Al Yasat is pioneering the implementation of AI modelling and analysis tools across its offshore concession area. The Belbazem block uses WellInsight, an AI tool developed by AIQ, to analyse reservoir data and manage operations for enhanced safety and performance. The block will also integrate advanced technologies already deployed at Al Yasat’s Bu Haseer offshore field, to optimise production and reservoir management.

The Belbazem block is leveraging operational synergies by utilising the facilities of Satah Al Razboot (SARB), an offshore field operated by Adnoc Offshore, resulting in cost savings and reduced environmental impact. Located 120 kilometers northwest of Abu Dhabi city, the Belbazem Block consists of three offshore fields; Belbazem, Umm Al Salsal and Umm Al Dholou.

Adnoc announced recently the signing of a 15-year Heads of Agreement (LNG agreement) with SEFE Marketing & Trading Singapore Pte Ltd., a subsidiary of Germany’s SEFE Securing Energy for Europe GmbH, for the delivery of one million metric tonnes per annum (mmtpa) of liquefied natural gas (LNG).

The LNG will primarily be sourced from Adnoc’s lower-carbon Ruwais LNG project, currently under development in Al Ruwais Industrial City, Abu Dhabi. The Ruwais LNG plant has been designed to run on clean power and will leverage the latest technologies and Artificial Intelligence (AI) tools to drive efficiency.

This is the second long-term LNG supply agreement from the Ruwais LNG project, following the 15-year agreement with China’s ENN Natural Gas signed in December 2023. The deliveries are expected to start in 2028, upon commencement of the facility’s commercial operations.

Fatema Al Nuaimi, Executive Vice President, Downstream Business Management at Adnoc, said, “This LNG agreement, the first with a European company from the Ruwais lower-carbon LNG project, underscores Adnoc’s position as a reliable and responsible global energy provider. Gas accounts for almost a quarter of Germany’s primary energy use, and we look forward to supporting its efforts to diversify its energy sources and enhance its energy security.” This LNG supply agreement reinforces the Energy Security and Industry Accelerator (ESIA) agreement, signed by the UAE and Germany in 2022, further strengthening bilateral cooperation in energy security, decarbonisation and climate action. It builds upon Adnoc’s delivery of the first LNG cargo from the Middle East to Germany in 2023.

Frédéric Barnaud, Chief Executive Officer of SEFE Marketing & Trading and Chief Commercial Officer of SEFE, said, “SEFE and Adnoc have a long and productive partnership, spanning over 15 years. This LNG supply agreement for the Ruwais LNG project, set to be one of the lowest-carbon intensity LNG projects in the world, marks the start of a new chapter. We aim to further build on our existing relationship and explore joint low-carbon energy developments.” Natural gas plays a crucial role as a transitional fuel, generating lower-carbon emissions compared to other fossil fuels. The Ruwais LNG project is set to be the first LNG export facility in the Middle East and North Africa region to run on clean power. When completed, the project, which consists of two 4.8mmtpa LNG liquefaction trains with a total capacity of 9.6mmtpa, will more than double Adnoc’s LNG production capacity to around 15mmtpa, to help meet increased global demand for natural gas.