Abu Dhabi Advances Oil Expansion Plans

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Abu Dhabi has awarded contracts which will add over 360,000 barrels per day to its onshore and offshore production by 2014, the first building blocks of its expansion program to reach 3.5 million b/d by 2017, the emirate's top oil officials said this week on the sidelines of the Adipec conference. The United Arab Emirates' production capacity is officially put at 2.8 million b/d, with the bulk of that coming from Abu Dhabi. Plans have been in place for years to increase production capacity to 3.5 million b/d by 2017, but only the emirate's $30 billion oil and gas spending spree in the last two years has advanced an agenda that has long been on the shelf. The most immediate upgrade will be a 50,000 b/d increase from the offshore Umm Shaif field in 2011, undertaken by Abu Dhabi Marine Operating Co. (Adma-Opco), Ali al-Jarwan, the company's general manager, told International Oil Daily. The increment will push Adma's production capacity from the Lower Zakum and Umm Shaif fields to 600,000 b/d, he said. Adma plans to add another 100,000 b/d from the Lower Zakum field by 2014, bringing the consortium's offshore production to 700,000 b/d, al-Jarwan said. Onshore, Abu Dhabi remains on track to add 213,000 b/d from its fields in 2012, said the head of the onshore concession, Abdul Munim al-Kindi this week (IOD Feb.9,p1). Abu Dhabi Co. for Onshore Operations (Adco) awarded over $5 billion in contracts in 2009 and 2010 for the Sahil, Asab, Shah, Qusahwira, Bida al-Qemzan and Bab field developments. With engineering procurement and construction work underway at these Adma and Adco increments, Abu Dhabi has solid plans to add at least 363,000 b/d by 2014. The other major Abu Dhabi operating company, the Exxon Mobil-led Zakum Development Co.(Zadco), has begun work on a $12 billion-$15 billion upgrade at the Upper Zakum field to boost production from 500,000 b/d to 750,000 b/d by 2015. It still needs to award the bulk of the engineering procurement and construction contracts, but Zadco could see early production in 2013 (IOD Nov.3,p2). Adco plans another 70,000 b/d boost from new reservoirs in the Bab and Asab fields, plus a second-phase development of the North East Bab (NEB) development by 2014-15. A final expansion will include developing additional reservoirs at Bab and Qusahwira, a third phase at NEB and the remote Mender field to add 142,000 b/d by 2016-17. Total Adco capacity will reach 1.8 million b/d. These contracts have not yet been awarded, but al-Kindi expects total value to reach around $5 billion. Adma plans to expand other offshore fields by another 270,000 b/d by 2017, al-Jarwan said. The undeveloped Nasr, Umm Lulu and Saath al-Ras Boot fields will be brought on stream in phases, he said. Nasr will add 25,000 b/d from temporary facilities before hitting 65,000 b/d once permanent facilities are in place by 2017. Umm Lulu and Saath al-Ras Boot will each target 100,000 b/d by 2017. Adma plans to hit 970,000 b/d by 2017, al-Jarwan said. Overall production capacity from Adma, Adco and Zadco will reach 3.520 million b/d by 2017. Alex Schindelar, Abu Dhabi Abu Dhabi's Major Oil Projects Project Increase^ Total Consortium Capacity^ Projected completion Onshore Adco Phase 1 Sahil, Asab, Shah*; Bab (Thamama-G, Habshan-2)*; Qusahwira*; Bida al-Qemzan*; North East Bab-1 213 1600 2012 Phase II Bab (Habshan-1), Asab (Thamama-A),North East Bab-2 70 1700 2014 Phase III Bab (Thamama-A), Qusahwira-2, North East Bab-3, Mender 142 1800 2016-17 Total Adco 425 1800 Offshore Adma-Opco Umm Shaif* 50 600 2011 Lower Zakum* 100 700 2014 Nasr, Umm Lulu, Saath al-Ras Boot 270 970 2017 Total Adma-Opco 420 970 Zadco Upper Zakum* 250 750 2015 Grand Total 1,095 3520 ^ In '000 b/d. *EPC contracts awarded. Source: Adco, Adma-Opco, Zadco.

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