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.