The United Arab Emirates (UAE) is ramping up production at a newly operational offshore field, aiming to boost its total output to around 3 million bpd, S&P Global Platts reported on Wednesday, citing sources close to the issue.
The Abu Dhabi National Oil Company (ADNOC), the producer of nearly all of the oil in the UAE, has started to raise production at the Umm Lulu offshore oil field, which was pumping around 30,000 bpd in August. Production at that field could rise to as high as 75,000 bpd, a UAE oil observer told Platts.
The increased volumes at the newly operational Umm Lulu oil field would raise the total UAE oil production to 3 million bpd.
According to OPEC's latest Monthly Oil Market Report with data for July, the UAE boosted its production by 69,200 bpd from June to 2.959 million bpd in July, as per OPEC's secondary sources. The UAE's self-reported figures to OPEC showed that oil production jumped by 85,000 bpd from June to 2.975 million in July.
Earlier this year, the UAE launched its new Umm Lulu grade, a sweet blend of the crude oil from the two offshore fields, Umm Lulu and the Satah Al Razboot (SARB), which are grouped in one offshore concession.
In April this year, Austria's OMV entered the 40-year concession with a 20-percent stake for US$1.5 billion.
According to Platts, the first Umm Lulu cargo was lifted in July from the Zirku Island in the Persian Gulf.
ADNOC's long-term goal is to raise the combined oil production at Umm Lulu and SARB to 215,000 bpd.
Reports of the UAE raising oil production come a few days after an OPEC source said that the UAE's ally and OPEC's biggest exporter Saudi Arabia will report to OPEC that its crude oil production increased in August compared to July to average 10.424 million bpd last month.
By Tsvetana Paraskova for Oilprice.com
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Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. More