Monday, Nov 12, 2012
Abu Dhab: Abu Dhabi Marine Operating Company (Adma-Opco), a key oil-producing unit of the Abu Dhabi National Oil Company (Adnoc) could invest up to $19 billion in developing new oil fields by 2019, according to Ali Rashid Al Jarwan, chief executive of Adma-Opco.
In an interview to Adipec News, the daily newsletter being published for the ongoing Abu Dhabi Petroleum Exhibition and Conference (Adipec) in the capital, Al Jarwan said: “New grassroot field development requires investment, and this will be between $10 billion to $15 billion in total by 2019 — if we implement all projects we are considering.”
He added that the overall oil price climate remains supportive of Abu Dhabi’s expansion plans.
“It seems that demand for oil will remain high and both supply and demand will continue to be tight for companies looking forward to developing traditional production. Oil prices continue to trade in the $80-$120 per barrel band, which provides assurance over the immediate outlook for investment,” said Al Jarwan.
He said Adma-Opco is pursuing 1 million barrels per day (bpd) production target and the majority of this will be completed by 2017, raising it from the current 600,000 bpd.
“Around 100,000 bpd of this will come from Lower Zakum, while the new volumes will come from three main fields : Umm Lulu, Satah Al Razboot (sarb) and the Nasr field, which will contribute 270,000 bpd. The remaining 30,000 bpd will come from existing fields, mainly Umm Shaif,” said Al Jarwan.
The UAE oil production capacity is expected to rise to around 3 million barrels per day (bpd) by the end of 2012. The country produced on average 2.69 million bpd in September, according to International Energy Agency’s estimates.
The UAE intends to increase its oil production capacity to 3.5 million bpd by 2018 to meet the rising global oil demand. As per plan, Abu Dhabi’s state oil producer Abu Dhabi National Oil Company (Adnoc) will spend $40 billion (Dh146.93 billion) on crude, natural gas, petrochemical and refinery projects from 2010 through 2014. Gas projects under construction account for $25 billion of that.
Abu Dhabi aims to start producing about 500 million cubic feet a day of sour gas in 2014 from a $10 billion venture with Occidental Petroleum Corp. at its onshore Shah field. The Shah field is located 210 km south west of Abu Dhabi city.
By Himendra Mohan Kumar Staff Reporter
Gulf News 2012. All rights reserved.
