UAE Says Oil Price Will Not Impact Expansion

The UAE has invested $70bn to raise its production capacity to 3.5mn b/d from the current 3mn b/d and will not be derailed by falling oil prices, senior officials told oil executives at the three-day Adipec exhibition and conference in Abu Dhabi held from 10 to 13 November.

With oil expansion plans now completed, the UAE is shifting its attention to exploiting its sour gas reserves with the first project, the Shah sour gas development, now in the commissioning phase.

The UAE’s 3.5mn b/d output target was to have been achieved by 2017 but slippages have pushed the date further into the future, though there is no doubt that Abu Dhabi will eventually make its promised contribution to global oil supplies. Still, uncertainty over the future makeup of the lapsed Abu Dhabi onshore concession (see p15), preparations to negotiate an offshore concession that expires in 2018, and a delay to boosting output from the giant Upper Zakum oil field with ExxonMobil’s involvement, have raised doubts as to the speed at which further development of Abu Dhabi’s now mature fields will proceed and with what technology. (CONTINUED - 3362 WORDS)