Abu Dhabi oil investments exceed $30 bln in one year: MEED

Abu Dhabi emirate is expected to pump in excess of $30 billion (Dh110 billion) into projects in one year to expand its oil and gas sector within an ongoing development programme in its hydrocarbon industry, MEED said yesterday.

The Emirate, which controls nearly eight per cent of the world’s proven crude deposits, will take advantage of lower construction costs to push ahead with massive hydrocarbon expansion plans, the London-based Middle East Economic Digest said in a statement ahead of its November conference in Abu Dhabi.

“As Abu Dhabi emerges as one of the most active oil and gas project markets in the world, MEED estimates that the emirate will spend more than $30 billion on new schemes between March 2009 and March 2010 as it aims to seize the momentum while benefiting from low materials and engineering costs,” it said.

“This is in line with Abu Dhabi’s goal to increase its crude oil production capacity to nearly 3.5 million barrels per day by 2019….as a result of these vast expansion plans, potential for investment within the emirate is huge.”

Abu Dhabi has already invested more than $10 billion over the past five years to maintain the present oil capacity and expand its sustainable output, which is currently estimated at around 2.5 million bpd.

The projects run parallel to other expansion plans in gas, refining and petrochemicals as the emirate is pursuing long-term programmes to take advantage of its mammoth oil and gas wealth and diversify its economy.

Abu Dhabi’s proven oil reserves are estimated at around 92 billion barrels while nearly six billion barrels are based in Dubai and other UAE emirates. Abu Dhabi also holds the world’s fifth largest gas resources after Russia, Iran, Qatar and Saudi Arabia, estimated at nearly 6.5 trillion cubic metres.

MEED said scores of officials and experts from the UAE and other countries would attend the November 10-12 conference which will cover investment opportunities in the hydrocarbons and other sectors in the region.

Key speakers at the fifth edition of the event include Nasser Ahmed Alsowaidi, Chairman of the Abu Dhabi Department of Economic Development, Fahad Al Raqbani, Deputy Director General, of the Abu Dhabi Council for Economic Development; Falah Al Ahbabi, General Manager of the Urban Planning Council; and Abdulla Saif Al Nuaimi, CEO, Abu Dhabi Water and Electricity Authority.

Foreign speakers include Frank Kemnetz, President, Exxon (Al-Khalij) and President, ExxonMobil Abu Dhabi Offshore Petroleum Company; Maurizio La Noce, Executive Director, Mubadala Energy & Industry and CEO, Mubadala Oil & Gas; and Mohamed Al Azdi, CEO, ChemaWEyaat.

“The exceptional O&G speaker line-up for this year’s conference offers various networking and knowledge opportunities for stakeholders and concerned parties. While the Gulf remains the world’s largest energy producer, its sustained growth needs to be carefully planned with respect to today’s challenging global economic conditions,” said Edmund O’Sullivan, Chairman, MEED Events.

“Through the invaluable views of our invited experts and decision makers, attendees will acquire a more precise and timely overview of the O&G business and learn what it takes to succeed in this highly lucrative market.”