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The UAE remains committed to increasing oil production to 3.5mn b/d by 2017.
Delegates at last year’s Adipec conference eagerly anticipated an announcement on which companies would be awarded shares in the 40% of the Abu Dhabi Company for Onshore Petroleum Operations (Adco) concession available to foreign firms. The wait goes on for 22% of the concession. This year, attention turned to how the country’s plans to increase production capacity from current levels of around 3.2mn b/d to 3.5mn b/d by 2017 will be impacted by the continued low price environment.
Unsurprisingly, the answer given by a host of senior Emirati officials is that there would be no impact. Energy Minister Suhail al-Mazru’i says that the fall in oil prices does not “change the vision of the UAE.” Production capacity will be increased to ensure that the UAE “will continue to be a reliable supplier.” Yes, state firm Adnoc is planning to reduce costs by 25%, but no, this will entail neither job losses nor a scaling back of planned capacity hikes. Efficiency savings are to be found by other means, such as the renegotiation of contracts. (CONTINUED - 1011 WORDS)