Aug.
2001 Vol. 222 No. 8 International Outlook
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MIDDLE EAST
Dr. A. F. Alhajji, Contributing Editor,
Boulder, Colorado
UAE Abu Dhabi
Diversification, economic reform and higher oil
revenues have contributed to a spectacular economic performance. The economy grew 9.5% and 10.5% in 1999 and
2000, respectively.
Last May, Enron Corp. relinquished its stake in Dolphin
Energy (DEL), because of a low profit margin. DEL has been owned by UAE Offsets Group (UOG, 51%), TotalFinaElf
(24.5%) and Enron (24.5%). Enron was responsible for building gas pipelines, marketing and management. At the
same time, DEL invited companies to pre-qualify for five contracts related to future supply of gas from Qatar
to the UAE
Drilling / development. The number of wells
drilled decreased 12.5% last year. Because of higher oil prices, a higher OPEC quota, and increased emphasis
on gas and offshore drilling, the number of wells drilled is expected to increase 18.4% this year. The number
of onshore wells drilled is expected to increase 7%.
Abu Dhabi Company for Onshore Oil Operations (ADCO)
plans to increase production from Rumaitha and Al-Dabbiyah fields to 100,000 bopd through installation of a
gas lift system, water injection facilities and related works. International companies were invited to submit
bids to carry out front-end engineering and design work for the upgrade.
Late last year, ADNOC signed a $260-million offshore
engineering, procurement and construction contract with ABB Lummus and National Petroleum Construction Co. for
the $1-billion Khuff gas project. It involves installation of a new gas gathering network and a new gas
processing platform, to enhance the sustainable flowrate of new and existing facilities to 540 MMcfgd from
current capacity of 300 MMcfgd.
Zakum Development Co. (Zadco) plans to increase
production from its offshore Zakum field to 600,000 bopd from the current 420,000 bopd by 2005. Gas
re-injection started earlier this year, to maintain pressure and increase production.
Production. At the beginning of this year, Abu
Dhabi Marine Operating company (ADMA-OPCO) commissioned a new 30-in., 57-mi (92-km) oil pipeline, joining
Zakum field to Das Island. Corrosion in the old pipeline forced construction of the new one to maintain
production capacity.
Oil production in 2001 increased in accordance with the
OPEC quota by 7.5%, to 2.1 million bpd. Recent data indicate that Abu Dhabi is producing about 120,000 bopd
above its OPEC quota.
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