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UAE January oil output down about 3% from December — IEA

UAE aims to increase its oil production capacity to 3.5m bpd by 2018

Gulf News

Abu Dhabi: The UAE’s crude oil output fell close to 3 per cent to average 2.60 million barrels a day (bpd) in January from 2.68 million bpd in December 2012, latest estimates of the Paris-based International Energy Agency (IEA) show.

“Production from the UAE declined by 80,000 bpd to 2.6 million bpd, due to a temporary reduction in onshore output stemming from work related to plans to raise crude oil production capacity from the current 2.8 million bpd to 3 million bpd. Plans to expand capacity by 200,000 bpd were delayed from the fourth quarter of 2012 and are now expected to be completed by the end of the first quarter of 2013,” said the IEA, which advises 28 industrialised countries on energy policy.

The UAE’s annual oil production average was 2.65 million barrels per day (bpd) in 2012, up from 2.5 million bpd in 2011.

Officials at the UAE’s Ministry of Energy weren’t immediately available to comment on the IEA’s figures.

The emirate of Abu Dhabi produces more than 90 per cent of the UAE’s crude oil output, the bulk of which is exported.

Global demand

The UAE intends to increase its oil production capacity to 3.5 million bpd by 2018 to meet the rising global oil demand. Abu Dhabi Marine Operating Company (Adma-Opco), majority-owned by the Abu Dhabi National Oil Company (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 plan, Abu Dhabi’s state oil producer Abu Dhabi National Oil Company (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 Abu Dhabi city.