Abu Dhabi Marine Operating Company (ADMA-OPCO), majority owned by Abu Dhabi's state oil firm, plans to spend at least $10 billion developing 2 offshore fields to boost the firm's crude output 60 percent by 2017, its chief executive said on Tuesday.
ADMA-OPCO, which is 60 percent owned by the Abu Dhabi National Oil Co (ADNOC), produces about 550,000 barrels of oil per day with a rise expected to 600,000 bpd early in 2011.
In an interview at an industry event Ali Rashid al Jarwan told Reuters: "By 2017, we will produce 970,000 bpd and the expected investment for the 2 new fields is $10 billion."
He said: "This is part of Abu Dhabi's overall plans to increase production capacity, both onshore and offshore."
ADMA-OPCO is developing 2 offshore oil fields, Umm al Lulu and Nasr, with the first phase expected to add 50,000 bpd.
Full phase development would add another 200,000 bpd, Jarwan said.
France's Technip has completed front end engineering and design for the first phase while Flour Corp won the FEED contract for the full phase development.
Jarwan said technical and commercial bids for the project are expected in the coming months.
ADMA-OPCO's oil and gas production comes from two major fields, Umm Shaif and Lower Zakum, which Jarwan said would add another 120,000 bpds.
He said: "Within three years, we will be increasing production capacity to 700,000 bpd while executing an additional 120,000 bpd from the lower Zakum field."
ADMA-OPCO is also in the final commissioning stage of the Umm Al Shaif gas injection project, which will boost output by 50,000 bpd from early next year, he said.
OPEC member Abu Dhabi is investing heavily in the energy sector to boost crude oil capacity.
ADMA-OPCO's other stakeholders are BP which has 14.33 percent, Total with 13.67 percent and Japan Oil Development Co, which owns 12 percent. Jodco is owned by INPEX. (Reuters)
For all the latest energy and oil news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
Subscribe to Arabian Business' newsletter to receive the latest breaking news and business stories in Dubai,the UAE and the GCC straight to your inbox.