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A view of the Haliba oil field in the United Arab Emirates. /Courtesy of Korea National Oil Corporation

The Haliba oil field in the United Arab Emirates (UAE), jointly developed by Korea National Oil Corporation (KNOC) and GS Energy, is expanding its production infrastructure.

The project will invest $272 million (approximately 400 billion won) in facilities to treat water produced during crude oil extraction. The investment is intended to support a production target of 50,000 barrels of oil per day and improve the competitiveness of the existing oil field.

Rather than acquiring new exploration blocks, the project focuses on upgrading production infrastructure at an oil field that has already achieved commercial production.

The continued investment is significant because South Korean companies have participated in the overseas resource development project from exploration through to crude oil production.

It also demonstrates how overseas resource development projects can move beyond initial production and establish a foundation for long-term operations.

According to Abu Dhabi National Oil Company (ADNOC) and industry sources on Monday, Al Dhafra Petroleum, the operator of the Haliba oil field, signed a contract worth 1 billion dirhams (approximately $272 million) with Excel ASTRA Engineering & Construction to develop water treatment facilities.

ADNOC recently announced the agreement at the Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC 2026).

The agreement is the largest design-build-operate (DBO) contract ever awarded by Al Dhafra Petroleum. Under the contract, Excel ASTRA will be responsible not only for designing and constructing the facilities but also for operating them after completion. 

KNOC also confirmed the contract and its value through local contacts.

"The contract details and value are correct," a KNOC official said.

However, the official added that the actual contract was understood to have been signed around June or July, with a symbolic ceremony held at the recent exhibition to mark the agreement.

The main purpose of the expansion is to ensure the reliable treatment of water extracted alongside crude oil.

As an oil field matures, the proportion of water produced along with the oil can increase.

This makes water treatment capacity a major factor affecting crude oil production.

If treatment capacity fails to keep pace with production needs, it can constrain oil output.

The new facilities are expected to reduce the risk of such bottlenecks and support stable production.

The Haliba oil field is a joint development project involving KNOC, GS Energy and ADNOC.

ADNOC holds the largest stake at 60%, while KNOC and GS Energy own 30% and 10%, respectively.

The South Korean consortium signed an agreement to participate in the oil block in March 2012 and subsequently took part in exploration and development activities. 

After undergoing development procedures, including appraisal well drilling and oil production testing, the field began commercial production in June 2019.

The project holds particular significance as an overseas resource development venture in which South Korean companies participated in exploration in the UAE and successfully brought the field into commercial production.

With further infrastructure investment continuing after production began, the project has entered a new phase aimed at strengthening its long-term production capacity.

The new water treatment facilities will be connected to existing crude oil gathering facilities to treat water generated during production.

Rather than simply adding auxiliary equipment, the facilities will serve as essential infrastructure for ensuring stable operations and achieving the field's production target.

ADNOC expects the new facilities to help Al Dhafra Petroleum reach its target of producing 50,000 barrels of crude oil per day.

However, the field's current production volume and the facilities' scheduled completion date have not been disclosed.

According to the contractor, the project will run from 2026 to 2033.

It is a long-term project covering not only facility design and construction but also subsequent operations and maintenance. 

                                                                                                           Son Kang-hoon