Middle East: Abu Dhabi

MIDDLE EAST

All countries, except Iran and Turkey, by Dr. A. F. Alhajji, Contributing Editor

UAE – Abu Dhabi

State-owned Abu Dhabi National Oil Co. (ADNOC) is emphasizing development and utilization of natural gas reserves. The industrial city of Jebel Ali in Dubai and various electric utilities in the UAE will be major consumers for ADNOC’s gas.

Exploration. A recent ADNOC report indicates that the company drilled two wildcats and 12 appraisal / delineation wells between 1995 and 1999. Total exploration and appraisal / delineation footage drilled during this period reached 167,265 ft, of which 23,161 ft were for two exploratory wells and the remainder was for 12 appraisal / delineation wells.

The Persian Gulf Click for enlarged view

Drilling/development. The number of wells drilled in 2000 is expected to stay at 1999’s level. However, drilling activity peaked last year, when the number of wells drilled onshore increased to 66, from 48 in 1998. Wells drilled offshore also increased to 24 last year, from 17 in 1998. In 1999, 13 rigs operated onshore, and 11 units were active offshore areas, two rigs above 1998.

Major oil development programs were implemented, mainly in the existing producing fields, to expand production capacities and achieve the "25-year plateau production rate." ADNOC’s report indicates that 237 oil wells were drilled onshore between 1995 and 1999, including 111 horizontal and 126 vertical wells. The report also indicates that 124 development wells were drilled offshore in that same period.

The second phase of Sahil field’s development program is scheduled for completion in 2004. The first phase was completed in 1997, when two gas injection trains were installed, and new facilities were added to achieve higher water injection capacity.

The Zakum Gas Injection Project offshore is scheduled for completion in third-quarter 2000. It is scheduled to deliver 200 MMcfd from GG-II to Upper and Lower Zakum gas injection pilots.

Gas from Abu Dhabi’s offshore Khuf reservoir, which lies under TotalFinaElf’s Abu Al Bukhoosh oil field, will be pumped through a 70-mi pipeline to Jebel Ali in Dubai. The pipeline is scheduled for completion in March 2001.

Late last year, ADNOC signed a joint declaration to work together with UAE Offsets Group for implementation of the Dolphin gas development project. The project will supply gas from Qatar’s North field via a 500-mi pipeline to Abu Dhabi, Dubai and Oman. The pipeline is expected to extend to Pakistan at a later stage. ADNOC’s participation in this program may indicate that the company will go on a spending spree to develop its gas potential as quickly as possible.

Asab gas project was completed this year. This large gas development included the drilling of 52 wells in Thamama C & D reservoirs to produce gas. It also has involved production of 100,000 bcpd from the Thamama F & G reservoirs, re-injection of 830 MMcfd of sour gas and constructing a pipeline to transport condensate to Ruwais refinery,

Last February, ADNOC signed a memorandum of understanding with Japan National Oil Corp. The firms agreed to cooperate in technical research and the use of gas injection to raise oil production levels from the offshore Upper Zakum oil field.

Production. OPEC production cuts in March 1999 lowered Abu Dhabi’s output by 200,000 bopd in the following six-month period. Sales gas production was 1.5 Bcfd in 1999. It is expected to increase to 1.600 Bcfgd in 2000, and 2.2 Bcfgd in 2001.