UAE average oil output dropped in April IEA

Monday, May 23, 2011

Gulf News

Abu Dhabi: The UAEs average oil output fell marginally in April to 2.51 million barrels per day (bpd), compared with 2.52 million bpd in March, according to the latest estimates by the Paris-based International Energy Agency (IEA).

Output from the UAE edged lower in April by 10,000 bpd to 2.51 million bpd and volumes may be reduced further in May following the unexpected shut down of the Upper Zakum field at end April. As much as 50 per cent of the fields 550,000 bpd capacity will be shut for the next several months, said the IEA, which advises 28 indusrialised countries on energy policy.

It is unclear if the Abu Dhabi National Oil Company (Adnoc) will increase output at the large Murban field and the smaller Lower Zakum to compensate, the IEA added.

Officials at the Ministry of Energy and Adnoc werent immediately available for comment.

According to media reports, Zakum Development Company (Zadco), operator of the field on behalf of Adnoc, previously confirmed the outage, but said it was for normal maintenance and would not affect monthly average production.

I dont think the outage of Upper Zakum field will have much impact on global oil prices. Global oil prices are creeping up anyway. The prices will increase at an accelerated rate in the near term, Dalton Garis, Associate Professor of Economics and Petroleum Market Behaviour, told Gulf News.

People around the world are getting used to the high price of gasoline. By November, I see oil prices close to $130 [Dh477] a barrel, Garis added.

By Himendra Mohan Kumar, Staff Reporter