Construction for Zakum project

Offshore construction for the Zakum water injection upgrade project which is aimed at increasing oil output by 100,000 barrels per day from the Lower Zakum field is planned for completion by June 2012, the latest newsletter from Abu Dhabi Marine Operating Company (Adma-Opco) says. The construction for the Zakum water injection project began in June. The project will upgrade the water injection facilities and install a new water injection platform meant to enhance the water injection volume. Adma-Opco, majority-owned by Abu Dhabi's state oil firm, plans to spend at least $10 billion developing two offshore fields to boost the firm's crude output 60 per cent by 2017, its chief executive Ali Rashid Al Jarwan said last year. Adma-Opco is 60 per cent owned by the Abu Dhabi National Oil Company (Adnoc) and produces more than 550,000 bpd of crude oil. Article continues below "By 2017, we will produce 970,000 bpd and the expected investment for the two new fields is $10 billion," said Al Jarwan said at the time. Adma-Opco is developing two offshore oil fields — Umm Al Lulu and Nasr. The UAE has set an overall target to increase its oil production capacity to 3.5 million bpd by 2018 from 2.7 million bpd as oil demand rises. Last year, Abdul Munim Al Kindy, chief executive of the Abu Dhabi Company for Onshore Oil Operations (Adco) told reporters he was hoping new capacity of 213,000 bpd would come on stream in 2012. He also said at the time, service contracts will be awarded in 2012 for projects that will bring on stream additional new capacity of 200,000 barrels per day by 2016. The official selling price of crude oil grades produced by the Abu Dhabi National Oil Company (Adnoc) averaged $106.62 per barrel during the first six months of 2011, up 37.95 per cent over the corresponding period a year earlier as an accelerated global economic recovery boosted oil prices on increased demand, data from Adnoc, extrapolated by Gulf News, showed. Between January and June 2010, the average official selling price of Abu Dhabi's crude oil grades was $77.95 per barrel.