Exxon aims to save billions of dollars at UAE field

Cost savings to come over 25 years remaining for commercial production at Upper Zakum
Exxon aims to save billions of dollars at UAE field
BUILDING PLANS: Exxon Mobil Corp plans to build four artificial islands in the Upper Zakum oil field off Abu Dhabi (Getty Images)
By Bloomberg
Mon 08 Nov 2010 07:17 PM

Exxon Mobil Corp and its partners plan to build four artificial islands in the Upper Zakum oil field off Abu Dhabi that could result in cost savings of several billion dollars, an Exxon executive said today.

Construction and use of the islands may allow for the removal of almost 100 wellhead towers in the sea and may save the project more than $1 billion and less than $15 billion, said Morten Mauritzen, president of Exxon Mobil Abu Dhabi Offshore Petroleum Co.

Mauritzen was speaking at an event in Abu Dhabi, the capital of the UAE.

The cost savings would come over the 25 years remaining for commercial production at Upper Zakum, where Zakum Development Co. project, known also as Zadco, is pumping crude.

State-run Abu Dhabi National Oil Co, or Adnoc, has a 60 percent stake in Zadco, with Exxon Mobil holding 28 percent and Japan Oil, a unit of Inpex Corp, owning the rest.

Zadco plans a $15 billion artificial islands project to boost production at the field by about 40 percent to 750,000 barrels a day.

Building islands is cheaper than erecting offshore production platforms, Salah Al Bufalah, Zadco’s major projects manager, said last year.

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