OTC '15: Relatively unaffected by low prices, Abu Dhabi pursues major expansion
HOUSTON -- Speaking to an OTC topical breakfast on Wednesday morning, ADMA-OPCO (Abu Dhabi Marine Operating Company) CEO Ali Rashid Al-Jarwan said that upstream activity is thriving in Abu Dhabi, despite the global downturn in oil prices. “In our case, we have learned from the past downturns—we’re being more efficient. But we’re also already committed to so many mega-projects, that it’s like a train—you can’t stop it. At ADNOC (Abu Dhabi National Oil Company, ADMA-OPCO’s parent), we have a long-term vision.”
Indeed, that vision expects ADMA-OPCO’s production to rise from the current 650,000 bopd to about 1.1 MMbopd in a 2017-2019 time frame. That output compares to overall production in the United Arab Emirates (UAE, of which Abu Dhabi is the largest emirate), which averages 2.85 MMbopd, excluding condensate. By 2017, Al-Jarwan said that he expects UAE output to hit 3.5 MMbopd. “We have some major investments being made in the next five years,” he explained. “We are increasing and sustaining production at brown fields, and developing new fields. This is irrespective of the current oil price.”
Accordingly, Al-Jarwan predicts that rig activity will grow from 69 units (35 onshore, 34 offshore) in 2014 to 100 units (53 onshore, 47 offshore) this year, and to 112 (63 onshore, 49 offshore) in 2016. The company also set a record recently, by conducting the world’s largest 3D-4C, ocean bottom cable, seismic survey at 2,830 km2, offshore Abu Dhabi.
Development offshore has focused on Umm LuLu, NASR and SARB fields, said Al-Jarwan. “We produced first oil from Umm LuLu last October. The first well flowed at over 5,000 bopd, and development will continue over the next several years.” Similarly, ADMA-OPCO put NASR field’s Phase 1 facilities online this past January. “The first well produced over 6,000 bopd, and the complete output from Phase 1 will be about 22,000 bopd by the end of this year.” Total output added from NASR will be about 65,000 bopd, once all development phases are complete by 2018.
Meanwhile, development continues at SARB field, which is highlighted by the construction of two artificial islands. Using the artificial islands has eliminated the need for contracting costly offshore rigs. Officials hope to get SARB onstream in 2017, producing 100,000 bopd.
Onshore, Al-Jarwan said that ADMA-OPCO’s sister company, ADCO, completed first-phase development of three fields last year, including Sahil, Asab and Shah. Phase 2 development will begin in 2015 and continue forward for several years. In addition, Northeast Bab field is the first ADCO full-field development built with an i-field concept. The Bab complex represents just under a quarter of ADCO’s production. Al-Jarwan noted that digital fields, with real-time capability, are being implemented onshore, and three green fields offshore will also have these features.
