Adnoc crude oil prices average $102.73 a barrel in May

Abu Dhabi

The official selling price of Abu Dhabi’s four crude oil grades averaged 102.73 a barrel in May, down from $104.64 a barrel in April, latest data from Abu Dhabi National Oil Company (Adnoc) shows.

In May, the official selling price of the emirate’s most popular crude oil grade — Murban — was $103.65 a barrel, while Lower Zakum’s price was $103.35 a barrel, as per the data. The official selling price of Umm Shaif crude oil grade in May was $102.95 per barrel and that of Upper Zakum crude was at $100.95 a barrel.

Adnoc’s crude oil grade prices have fallen in line with international oil prices that have fluctuated sharply in recent months due to growing concerns the global economy is slowing, which is almost certain to crimp the world oil demand growth.

Abu Dhabi accounts for more than 90 per cent of the UAE’s crude oil output, the bulk of which is exported. According to the International Energy Agency (IEA), the UAE’s May oil output rose 1.1 per cent over April to 2.73 million barrels per day (bpd).

The UAE’s sustainable oil production capacity was 2.9 million bpd in May, the Paris-based IEA said recently. The IEA which advises 28 industrialised countries on energy policy.

The IEA said the country’s average crude supply for the first quarter this year was 2.67 million bpd.

The UAE intends to increase its oil production capacity to 3.5 million bpd by 2018 to meet the rising global oil demand.

The Abu Dhabi Marine Operating Company (Adma-Opco), which is majority-owned by Adnoc, plans to invest at least $10 billion (Dh36.7 billion) developing two offshore fields to boost the firm’s crude output by 60 per cent by 2017.

As per the plan, Adnoc will spend $40 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 kilometres south-west of the capital.