Dubai: A new oil discovery could significantly boost Dubai's hydrocarbon output and help it achieve speedy growth next year when production starts.
The Dubai Government Thursday announced the discovery of the new offshore oil field, east of the existing Rashid crude oil field. The volume of the new field has yet to be assessed.
The new deposits would "strengthen the economic capabilities of the country and increase oil production," His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai said in a statement.
The oil field will reinforce infrastructure and production in Dubai and "give a strong impetus to all sectors of the local economy and provide a new source of income, enhancing the overall development of Dubai," he added.
Shaikh Ahmad Bin Saeed Al Maktoum, Chairman of the Department of Oil Affairs and Chairman of the Supreme Council for Energy, will head the development of the new marine oil field.
Exploration
He has been asked to "undertake all acts of exploration and prospecting of the field discovered," according to the statement.
He will also be involved in conducting necessary research to ascertain the size of the crude oil deposit and the production capacity in the short and long-term.
Shaikh Mohammad asked him to assess the economic benefits of the field "as soon as possible" during a meeting with dignitaries and ministers ahead of a Council of Ministers gathering at Qasr Al Sarab desert resort near Liwa.
Promising capacity
The Arabic daily Al Bayan quoted sources yesterday as saying the new oil field is "promising" in terms of production capacity.
The timely discovery will boost the economy of Dubai, as it deals with maturing debts in the coming months related to Dubai World.
At present, oil contributes less than 5 per cent to Dubai's $54 billion (Dh198 billion) GDP.
Crude oil production in the UAE reached 2.28 million barrels per day in December. Dubai's share is small.
