Abu Dhabi sets higher oil capacity target

02 December 2005
Energy Minister Mohammed bin Dhaen al-Hamli announced in Abu Dhabi on 21 November plans for a major increase in oil production capacity. 'The UAE currently produces more than 2.5 million b/d [barrels a day] and by the end of this year and early next year, an additional 200,000 b/d will be added to production capacity,' the official Emirates News Agency (WAM) quoted Al-Hamli as saying. 'Continued investments in upstream projects should expand the production capacity to more than 3.5 million b/d in the next few years.'

Previously, Abu Dhabi, which accounts for more than 90 per cent of UAE production, had targeted capacity of 3 million b/d.

A major share of the planned increase will come from Zakum Development Company (Zadco). The operator of three offshore oil fields has invited companies to submit technical and commercials bids by 30 November for a conceptual design study involving the offshore Umm al-Dalkh (UAD) full-field development project. The invitees include Paris-based Technip, the US/Canadian VECO, Australia's WorleyParsonsand Foster Wheeler, Washington Group International and Mustang Engineering, all US-based. However, submission of bids is likely to be delayed as Zadco plans major changes in the scope of works (MEED 29:7:05).

The estimated $150 million project is aimed at increasing production capacity to 20,000 b/d from 13,000 b/d, through handling water cuts and enhanced oil recovery (EOR) techniques. It will entail the drilling of new production wells, reinjection of gas and water to maintain reservoir pressure and installation of submersible pumps.

UAD is the second full-field development project planned by Zadco. An award is due for the front-end engineering and design (FEED) package on the Satah field project. Estimated to cost $200 million-250 million, it centres on the supply and installation ofgas injection compressors and pipelines.

The project is aimed at the reinjection of 10 million cubic feet a day of associated gas to maintain reservoir pressure at the offshore field. At present, Satah has production capacity of about 25,000 b/d.

Zadco's biggest increase in production capacity is planned at Upper Zakum, where a major gas reinjection scheme is planned. When completed, the scheme will increase production capacity to 750,000 b/d from 550,000 b/d.

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