Abu Dhabi to invest Dh260bn in oil capacity expansion

Abu Dhabi is planning to pump a whopping Dh260 billion into projects to expand its sustainable crude oil production capacity to nearly 3.5 million barrels per day in 2017 within an ambitious strategy to develop its massive hydrocarbon sector, the emirate’s lifeline.

The government-controlled Abu Dhabi National Oil Company (ADNOC) is managing the expansions carried out by its key oil firms, including the Abu Dhabi Oil Company for Onshore Operations (ADCO), one of the largest oil producing companies in the world.

ADNOC’s director general Abdullah Al Suwaidi put the current output capacity at around 2.8 million bpd and said expansions in the next five years would cover many oilfields in the emirate, which controls just below 10 per cent of the world’s recoverable crude resources.

“We are pushing ahead with expansion plans that involve total investment of nearly Dh260 billion…by the end of 2017, Abu Dhabi’s oil production capacity will reach the targeted level of about 3.5 million bpd,” he told the semi official daily Alittihad.

He said a key project involves increasing the production of ADCO’s field from 1.4 million bpd to 1.8 million bpd by developing Asab and other onshore fields managed by the company.

Asab’s capacity will be lifted from 290,000 bpd to 340,000 bpd while Sahl field will be expanded from 55,000 to 100,000 bpd and Shah from
50,000 to 70,000 bpd, Suwaidi said.

He said ADNOC, which controls Abu Dhabi’s hydrocarbon sector, is also pressing ahead with projects to raise Habshan and Thamama fields to
80,0000 bpd by the end of this year.

He said major projects are also being carried by the Abu Dhabi Marine Oil Operations Company (ADMA-OPCO), including maintaining the 600,000 bpd output capacity of Lower Zakum, one of the world’s largest offshore oilfields. Further projects involve increasing that capacity by around 100,000 bpd at the end of 2016, he said.

“Regarding Upper Zakum, its capacity will be raised to nearly 750,000 bpd by 2017…this is one of the largest oil ventures being undertaken by ADNOC,” he said, adding that ZADCO’s total production will reach one million bpd in 2016.

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