UAE to increase production by 30 per cent in five years

EOR johnhill wcThe UAE also holds the seventh-largest proved reserves of natural gas in the world, at slightly more than six trillion cu/m. (Image source: John Hill/Wikimedia Commons)Using enhanced oil recovery (EOR) techniques, the UAE plans to expand its production 30 per cent by 2020, according to latest Energy Information Administration (EIA) report

EOR is an expensive process, and at current prices, these projects may not be economic. However, despite current low oil prices, the UAE continues to invest in future production, the report stated.

The UAE was the world’s sixth-largest oil producer in 2014, and the second-largest producer of petroleum and other liquids in the OPEC, after Saudi Arabia. Because the prospects for further oil discoveries in the UAE are low, the UAE is relying on the application of EOR techniques in mature oilfields to increase production.

The Upper Zakum oilfield is one region that has been targeted for further development. The field is the second largest offshore oilfield and fourth largest oilfield in the world and it currently produces about 590,000 bpd. In July 2012, the Zakum Development Company had awarded an US$800mn engineering, procurement, and construction (EPC) contract to Abu Dhabi’s National Petroleum Construction Company, with the goal of expanding oil production at the Upper Zakum field to 750,000 bpd by 2016. Production from the Lower Zakum field should also increase, with oil production eventually reaching 425,000 bpd, an increase from the current level of 345,000 bpd.

The UAE also produced 53.bn cu/m of natural gas in 2013. A top-20 global natural gas producer, the UAE also holds the seventh-largest proved reserves of natural gas in the world, at slightly more than six trillion cu/m.

Despite its large reserves, the UAE became a net importer of natural gas in 2008 as a result of two things: the UAE re-injected approximately 30 per cent of gross natural gas production in 2012 into its oilfields as part of EOR techniques, and the country’s rapidly expanding electricity grid relies on electricity from natural gas-fired facilities.

To help meet growing internal natural gas demand, the UAE has increased imports from Qatar and plans to increase domestic natural gas production. However, the UAE’s natural gas has a relatively high sulfur content that makes it difficult to process, making it hard for the country to develop its extensive reserves.

Advances in technology and growing demand have made the UAE’s reserves an economic alternative to imports from Qatar, and UAE has several ongoing projects that will increase the country's production in coming years.

The UAE has also announced its intention to expand non-oil energy assets, in an attempt to reduce reliance on natural gas for power.

 

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