ID :
21901
Mon, 09/29/2008 - 15:10
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https://oananews.org//node/21901
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UAE to add 650,000bpd in two years
The UAE is pressing ahead with mega projects to add nearly 650,000 barrels per day (bpd) to its sustainable crude production capacity within two years to maintain its position as one of the world's largest oil suppliers, a Gulf study said yesterday according to “Emirates Business 24|7”.
The majority of the projects are carried out by the country's two main oil producers – the Abu Dhabi Company for Onshore Oil Operations (Adco) and the Abu Dhabi Marine Oil Operations Company.
Adco, the largest crude producer in the UAE and one of the top global oil suppliers, is expanding its capacity by nearly 400,000bpd, according to a study, sent to Emirates Business by Global Investment House (GIH). "The UAE is locked in major projects with the aim of expanding its crude production capacity by 650,000 bpd by 2010," the Kuwaiti-based GIH said in the study about the GCC oil projects, citing official data.
"The major expansion work in this field is being undertaken by Adco, which is looking to expand its oil output capacity to around 1.8 million bpd from the its current 1.4m bpd capacity by executing a US$3 billion (Dh11bn) project – Adco phase 1 – which is expected to come on stream by 2010."
GIH provided no figures on investments in such projects but according to the Saudi-based Arab Petroleum Investment Corporation (Apicorp), the UAE is expected to spend nearly US$12.5bn on crude capacity expansion ventures between 2008 and 2012. The funds are part of investments of about US$31.7bn in the energy sector, including oil, gas and electricity.
The UAE's current sustainable oil output capacity is estimated at 2.7m bpd and the new projects would lift it above 3.3m bpd in 2010.
But a report by the London-based Centre for Global Energy Studies (CGES) said part of the projects could be put on hold and the UAE could opt for a capacity of around three million bpd to match global demand.
"The UAE has set a target to increase its sustainable crude output capacity by one million bpd by 2012 but nearly 300,000 bpd will be added because of market conditions and demand growth," said Julian Lee, a senior energy analyst at CGES, which is run by former Saudi oil minister Sheikh Ahmed Al Yamani.
In another report published early this year, the UAE National Media Council said oil projects in the country could lift capacity to five million bpd by 2014. "The UAE has plans to raise its oil production capacity to 3.5 million bpd within two years and to nearly five million bpd by 2014," it said.
A large part of the increase would come from such giant fields as Umm Shaif and Upper and Lower Zakum, among the largest oil basins in the world.
Abu Dhabi, the main oil producer in the UAE, has already awarded contracts to foreign firms to develop its onshore and offshore oilfields. The UAE, a key OPEC member, controls the world's fifth largest proven oil resources, estimated at 98.7bn barrels at the start of 2008. Its gas reserves of around 6.5trn cubic metres are also the world's fifth largest after those of Russia, Iran, Qatar and Saudi Arabia. –
The majority of the projects are carried out by the country's two main oil producers – the Abu Dhabi Company for Onshore Oil Operations (Adco) and the Abu Dhabi Marine Oil Operations Company.
Adco, the largest crude producer in the UAE and one of the top global oil suppliers, is expanding its capacity by nearly 400,000bpd, according to a study, sent to Emirates Business by Global Investment House (GIH). "The UAE is locked in major projects with the aim of expanding its crude production capacity by 650,000 bpd by 2010," the Kuwaiti-based GIH said in the study about the GCC oil projects, citing official data.
"The major expansion work in this field is being undertaken by Adco, which is looking to expand its oil output capacity to around 1.8 million bpd from the its current 1.4m bpd capacity by executing a US$3 billion (Dh11bn) project – Adco phase 1 – which is expected to come on stream by 2010."
GIH provided no figures on investments in such projects but according to the Saudi-based Arab Petroleum Investment Corporation (Apicorp), the UAE is expected to spend nearly US$12.5bn on crude capacity expansion ventures between 2008 and 2012. The funds are part of investments of about US$31.7bn in the energy sector, including oil, gas and electricity.
The UAE's current sustainable oil output capacity is estimated at 2.7m bpd and the new projects would lift it above 3.3m bpd in 2010.
But a report by the London-based Centre for Global Energy Studies (CGES) said part of the projects could be put on hold and the UAE could opt for a capacity of around three million bpd to match global demand.
"The UAE has set a target to increase its sustainable crude output capacity by one million bpd by 2012 but nearly 300,000 bpd will be added because of market conditions and demand growth," said Julian Lee, a senior energy analyst at CGES, which is run by former Saudi oil minister Sheikh Ahmed Al Yamani.
In another report published early this year, the UAE National Media Council said oil projects in the country could lift capacity to five million bpd by 2014. "The UAE has plans to raise its oil production capacity to 3.5 million bpd within two years and to nearly five million bpd by 2014," it said.
A large part of the increase would come from such giant fields as Umm Shaif and Upper and Lower Zakum, among the largest oil basins in the world.
Abu Dhabi, the main oil producer in the UAE, has already awarded contracts to foreign firms to develop its onshore and offshore oilfields. The UAE, a key OPEC member, controls the world's fifth largest proven oil resources, estimated at 98.7bn barrels at the start of 2008. Its gas reserves of around 6.5trn cubic metres are also the world's fifth largest after those of Russia, Iran, Qatar and Saudi Arabia. –
