Monday, January 4, 2010

UAE to cut oil output from February


DUBAI (Agencies)

The Abu Dhabi National Oil Company, the largest such company in the United Arab Emirates, has announced it will cut back its production from February, the official WAM news agency said Monday.

The move is "in line with (an) OPEC decision to cut production," the report said without providing further details.

The company will cut production by between 10 percent and 15 percent in four major oilfields in Abu Dhabi, which alone holds more than 95 percent of UAE oil reserves, estimated at around 100 billion barrels, it added.

The Organization of Petroleum Exporting Countries (OPEC) at its meeting in Angola last week decided to keep its production quotas unchanged, but several members have asked for more production compliance to reduce inventories in the international oil market.

According to the Middle East Economic Survey, UAE production stood at 2.250 million barrels per day in November, slightly above its OPEC quota of 2.230 million bpd.

The last time OPEC decided to cut its output was in December 2008 when it reduced the 12-member production, excluding Iraq, by 4.2 million bpd to 24.845 million bpd.

" It is a part of the integrated gas development (IGD) project which is... to process and supply the gas to meet the growing needs and development plans of Abu Dhabi "
Fahim Kazim, general manager of ADGAS

Meanwhile, Abu Dhabi Gas Liquefaction Company Ltd (ADGAS) has formally signed an agreement worth $1 billion with Hyundai Heavy Industries Co for the construction of an integrated gas development plant on Das Island, state news agency WAM reported on Monday.

The South Korean firm said in July it had won the $1 billion gas equipment project order in the United Arab Emirates.

ADGAS, a subsidiary of ADNOC plans to complete the project over a 49 month period and will involve multiple offshore and onshore sites, said Fahim Kazim, general manager of ADGAS.

"It is a part of the integrated gas development (IGD) project which is... to process and supply the gas to meet the growing needs and development plans of Abu Dhabi," he added.

Limited land area on Das Island had been a challenge facing the project, said Kazim.

"Due to the limited area on Das Island, we had to reclaim an additional 108,000 square meters of land for the project facilities and to build a 100 meter long jetty for off loading of heavy 1500 Tons modules."

Around 85 percent of the LNG produced at Das Island is exported to Japan's Tokyo Electric Power Co. ADNOC is the government-run oil company for the emirate of Abu Dhabi, the leader of the seven-member federation of the United Arab Emirates.

Abu Dhabi holds most of the oil and gas reserves in the UAE, the world's third-largest oil exporter.
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