Abu Dhabi is targeting an increase of its onshore crude production capacity by about 120,000 bpd over this coming year, lifting the total production capacity of its state-dominated Abu Dhabi Company for Onshore Oil Operations (ADCO) joint venture with a group of IOCs from about 1.5 million bpd to 1.62 million bpd, so says IHS Global Insight’s senior Middle East energy analyst, Samuel Ciszuk.
The increase is the result of the company’s US$5.3-billion investment programme, ADCO chief executive, Abdul Munim al-Kindy told Abu Dhabi’s daily al-Ittihad recently, adding that by 2017 its capacity would reach 1.8 million bpd.
The UAE which owns 8% of world oil reserves – 95% of which is found within the Emirate of Abu Dhabi – has plans to ramp up overall production to 3.5 million bpd by 2017.
Al-Kindy further told the newspaper that a contract for the third and final package of contracts to complete the re-development of the al-Dabbiya, Shenayel, Habshan, Jessoura, and Munthir oilfields would be awarded very soon, while putting the re-development of the Asab oilfield, in production since 1970, at a 47% completion rate and work on the Sahel and Shah fields complete to about 36%.
Work on the Bab field, in production since 1963, would be complete during the first quarter this year, Platts relayed him saying.
Production from the Asab field will reach 375,000 bpd from 285,000 bpd, while Sahel output will grow to 100,000 bpd from 75,000 bpd, and Jessoura to 40,000 bpd from 30,000 bpd, according to the news agency, while Bab production will go up from 300,000 bpd to 380,000 bpd.
Al-Kindy also told al-Ittihad that ADCO had awarded a US$300 million contract to develop the Bida al-Qemzan oilfield to 25,000 bpd, likely referring to a FosterWheeler contract awarded in the middle of last year.
Shifting up a gear
Abu Dhabi’s upstream development and capacity boost plans have a history of being delayed and rescheduled for years over the past two decades, but they did start to take off in 2009, as the emirate moved to capture falling contracting costs in the region while benefitting from an ease in the domestic gas supply balance.
Low gas availability has been one of the main reasons behind Abu Dhabi’s previous delays, as future oil production increases largely depend on enhanced oil recovery (EOR) projects using gas injection at its mature fields. ADCO is currently running a Co2 EOR pilot in an effort to improve production output.
Hence, it first needed a breakthrough in raising its associated gas production levels and minimising flare-offs before it could proceed decisively with oil development.
ADCO’s parent company, Abu Dhabi National Oil Company (ADNOC) is partnered in ADCO by BP, Total, Shell, and ExxonMobil—each with a 9.5% stake—as well as Portugal’s Partex with 2%.
