Abu Dhabi pushes back oil production target timeline

12 August 2010

Delays to projects in 2007 and 2008 push back output boost plans by three years

Abu Dhabi will not reach its oil production capacity target of 3.5 million barrels a day (b/d) until 2018, marking a three-year delay in the planned output boost.

In a report launched by Abu Dhabi’s department of economic development on 5 August, the emirate’s government confirms that it will only hit the 3.5 million b/d target, up from 2.7 million b/d currently, by 2018. Abu Dhabi had previously said that it would hit the target by 2015.

MEED reported in 2009 that the emirate would miss its production targets after a series of delays to major new production schemes over the previous two years on the back of rising construction and engineering costs.

As a member of the international oil cartel Opec, the UAE is currently subject to a production quota of 2.2 million b/d, with the vast majority of this produced in Abu Dhabi, with other emirates responsible for a tiny amount of the total.

Abu Dhabi National Oil Company (Adnoc) has awarded more than $40bn of new construction contracts since the beginning of 2009, as it moves to capitalise on falling construction costs.

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