UAE pumped nearly Dh 8.3 bn into oilfield development

The UAE pumped nearly Dh 8.3 bn into oilfield development last year compared with around Dh 6.8 bn in 1995, according to figures provided by the Planning Ministry. The investments covered development and maintenance of onshore and offshore oilfields through water and gas injection as well as updating of some operation systems.
In a report on energy investment in the UAE, the planning ministry gave no figures for previous years but oil executives estimated the UAE invested at least $ 15 bn in the oil sector over the past decade. The projects added more than half a million bpd to the output capacity, now estimated at 2.6 mm bpd. Further investments under an ambitious expansion plan approved by the Supreme Petroleum Council will take capacity to 3 mm bpd within five years.

Most of the expansions were carried out in Abu Dhabi, which accounts for nearly 85 % of the country's actual oil output and more than 90 % of reserves, the figures showed. Although UAE's oil output was almost unchanged last year compared with 1995, the value of crude exports leapt around 62 % to Dh 73.3 bn in 2000 from Dh 45.3 bn in 1995, according to the report.
"The surge was due to a sharp increase in oil prices," it said. "Investments in the oil sector in Abu Dhabi alone stood at Dh6.8 bn and they concentrated on water injection to develop and maintain the capacity of some fields. "The projects in Dubai and Sharjah covered drilling of new wells and maintenance of oil facilities."

The figures showed oil investments in the UAE last year formed nearly 16 % of the total capital of around Dh 51.5 bn. The UAE has the third largest proven oil resources in the world after Saudi Arabia and Iraq. These are officially put at nearly 8 bn barrels. It also controls the fourth biggest gas wealth after Russia, Iran and Qatar.