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ADNOC Invests $318 Million to Connect Smart Wells at BU Hasa Oilfield

The Bu Hasa asset is located 200 kilometers south of Abu Dhabi city. It is one of ADNOC’s oldest oil fields that have been producing since 1965. - WAM
The Bu Hasa asset is located 200 kilometers south of Abu Dhabi city. It is one of ADNOC’s oldest oil fields that have been producing since 1965. - WAM
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ADNOC Invests $318 Million to Connect Smart Wells at BU Hasa Oilfield

The Bu Hasa asset is located 200 kilometers south of Abu Dhabi city. It is one of ADNOC’s oldest oil fields that have been producing since 1965. - WAM
The Bu Hasa asset is located 200 kilometers south of Abu Dhabi city. It is one of ADNOC’s oldest oil fields that have been producing since 1965. - WAM

The Abu Dhabi National Oil Company (ADNOC) announced Tuesday the details of an investment worth to $318 million (AED1.16 billion) to connect newly drilled smart wells to the main production facilities at Bu Hasa, which will sustain production capacity of 650,000 barrels per day (bpd) at ADNOC’s largest onshore asset.

The engineering, procurement and construction (EPC) contract has been awarded in two packages by ADNOC’s subsidiary, ADNOC Onshore, state news agency WAM reported.

The first package is valued at up to $158.6 million (AED582 million) and has been awarded to China Petroleum Pipeline Engineering Co. Ltd, while the second, with a value of up to $159.1 million (AED 583.9 million) - has been awarded to Robt Stone (ME) LLC.

The contracts's duration is up to three years, with the option of a two-year extension.

In this regard, Yaser Saeed Almazrouei, ADNOC Upstream Executive Director, said: "This EPC award demonstrates how ADNOC is leveraging advanced technologies, such as smart wells with state-of-the-art remote capabilities, to drive higher performance from our assets and resources, and to generate additional value."

"The award underpins our strategic objectives to expand production capacity and create a more profitable upstream business with over half of the contract value flowing back into the UAE’s economy, supporting local businesses and stimulating economic growth."

According to WAM, the EPC contract will see up to 260 conventional and non-conventional smart wells installed, which enable remote operations. The installed tie-ins will be different from traditional tie-ins previously used by ADNOC Onshore, as the contractors will procure all required equipment on an upfront basis allowing for faster construction and well hand-over.

In 2018, ADNOC awarded a contract for the Bu Hasa Integrated Field Development Project (BUIFDP) to increase the production capacity of the asset to 650,000 bpd and sustain long-term production as part of its strategy to expand its crude oil production capacity to 5 million bpd by 2030. This new award builds on the substantial progress made to date and will enable ADNOC Onshore to unlock greater value from the asset.

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Trump Announces 30% Tariffs Against EU, Mexico to begin August 1

President Donald J. Trump speaks at a roundtable discussion at the Community Emergency Operations Center in Kerrville, Texas, Friday, July 11, 2025. (Ricardo B. Brazziell/Austin American-Statesman via AP)
President Donald J. Trump speaks at a roundtable discussion at the Community Emergency Operations Center in Kerrville, Texas, Friday, July 11, 2025. (Ricardo B. Brazziell/Austin American-Statesman via AP)
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Trump Announces 30% Tariffs Against EU, Mexico to begin August 1

President Donald J. Trump speaks at a roundtable discussion at the Community Emergency Operations Center in Kerrville, Texas, Friday, July 11, 2025. (Ricardo B. Brazziell/Austin American-Statesman via AP)
President Donald J. Trump speaks at a roundtable discussion at the Community Emergency Operations Center in Kerrville, Texas, Friday, July 11, 2025. (Ricardo B. Brazziell/Austin American-Statesman via AP)

President Donald Trump on Saturday announced he's levying tariffs of 30% against the European Union and Mexico.

Trump announced the tariffs on two of the United States' biggest trade partners in letters posted to his social media account.

In his letter to Mexico's leader, Trump acknowledged that the country has been helpful in stemming the flow of undocumented migrants and fentanyl into the United States. But he said the country has not done enough to stop North America from turning into a “Narco-Trafficking Playground.”

“Mexico has been helping me secure the border, BUT, what Mexico has done, is not enough,” Trump added, The AP news reported.

Trump in his letter to the European Union said that the US trade deficit was a national security threat.

“We have had years to discuss our Trading Relationship with The European Union, and we have concluded we must move away from these long-term, large, and persistent, Trade Deficits, engendered by your Tariff, and Non-Tariff, Policies, and Trade Barriers,” Trump wrote in the letter to the EU. “Our relationship has been, unfortunately, far from Reciprocal.”

Trump is in the midst of an announcement blitz of new tariffs with allies and foes alike, a bedrock of his 2024 campaign that he said would set the foundation for reviving a US economy that he claims has been ripped off by other nations for decades.

With the reciprocal tariffs, Trump is effectively blowing up the rules governing world trade. For decades, the United States and most other countries abided by tariff rates set through a series of complex negotiations known as the Uruguay round. Countries could set their own tariffs – but under the “most favored nation’’ approach, they couldn’t charge one country more than they charged another.

With Saturday's letters, Trump has now issued tariff conditions on 24 countries and the 27-member European Union.

The European Union’s chief trade negotiator said earlier this week that a trade deal to avert higher tariffs on European goods imported to the US could be reached “even in the coming days.” Maroš Šefčovič told EU lawmakers in Strasbourg, France on Wednesday that the EU had been spared the increased tariffs contained in the letters Trump sent on Monday, and that an extension of talks would provide “additional space to reach a satisfactory conclusion.”

The bloc collectively sells more to the US than any other country. US goods imports from the EU topped $553 billion in 2022, according to the Office of the US Trade Representative.

Trump on April 2 proposed a 20% tariff for EU goods and then threatened to raise that to 50% after negotiations did not move as fast as he would have liked. Sefcovic did not mention any tariff figures.

The higher tariffs as well as any EU retaliation had been suspended as the two sides negotiate. However the base rate of 10% for most trade partners as well as higher rates of 25% on autos and 50% on steel and aluminum had gone into effect.

Douglas Holtz-Eakin, a former Congressional Budget Office director and president of the center-right American Action Forum, said the letters were evidence that serious trade talks were not taking place over the past three months. He stressed that nations were instead talking amongst themselves about how to minimize their own exposure to the US economy and Trump.

“They’re spending time talking to each other about what the future is going to look like, and we’re left out,” Holtz-Eakin said.

He added that Trump was using the letters to demand attention, but, “In the end, these are letters to other countries about taxes he’s going to levy on his citizens.”